Stock market turnover impressive at Rs. 5 b; profit taking checkmates higher gain by indices

The Colombo stock market yesterday sustained its trading velocity for a second consecutive session though a degree of profit taking after following dizzy heights on Tuesday check-mated a sharp rise in price indices. Turnover yesterday amounted to an impressive Rs. 5 billion, on the back of Rs. 7.3 billion on Monday. Volume of shares traded was 173 million, lower from 335.6 million the previous day.

The benchmark ASPI closed the day up 99.5 points or 1% and the active S&P SL20 gained by 1.3%. On Tuesday the indices rose by 6.7% and 9.56% respectively as investors toasted a Domestic Debt Optimisation (DDO) beneficial to the economy, financial services industry and equities.

Foreigners too remained bullish with net buying.

Asia Securities said the indices continued their upward momentum despite an initial bout of profit-taking on Wednesday (05) led by price gains in index-heavy counters JKH (+2.3%), EXPO (+2.8%), HAYL (+5.6%), RICH (+7.0%), NDB (+4.9%), and DIAL (+3.8%). The ASPI briefly reached the 10,200 mark in early trading (+128 points), however retreated to 10,065 (-12 points) as investors opted to book profits in banking sector counters following the sharp price gains witnessed the previous day. However, the index reversed its course trending towards the 10,200 levels for the remainder of the session. Eventually, the ASPI closed out the session at 10,176 (+99 points) while the S&P SL20 crossed the 3,000 mark to close at 3,013 (+40 points). HAYL (+13 points), RICH (+12 points), and JKH (+11 points) came in as the major index movers for the day. The breadth of the market was positive with 137 price gainers and 70 decliners.

Asia said net foreign buying topped in JKH at Rs. 282.8 million and selling topped in KHL at Rs. 5 million.

Crossings accounted for 26.7% of turnover led by NDB (Rs. 355.3 million), JKH (Rs. 352 million), COMBN (Rs. 154.4 million), and EXPO (Rs. 282 million).

First Capital said after experiencing a record-breaking day Tuesday, market took a breather during the morning session as profit-taking intensified, on the selective Banking sector counters. Although the index witnessed a shortfall at 10,064, it subsequently shook off the early selling pressure by displaying a sharp rally on the index heavyweights, leading to a 15-month high of 10,176.

It said following the buoyant sentiment post DDR clarification, bond yields have stabilised and are approaching pre-crisis levels. Consequently, investors started to increase their equity exposure, resulting in Rs. 5 billion turnover.

Banking sector dominated the turnover, followed by the Capital Goods sector, jointly accounting for 52% of the contribution. High net worth and institutional investors continued to actively participate focusing on blue-chip companies and Banks, namely NDB, JKH, and EXPO. Notably, NDB witnessed a stake change of 1.6% through an off-board transaction, totalling 5.9 million shares at Rs. 60. Moreover, JKH and COMB continued to attract foreign investments and lead the foreign inflow where YTD net foreign inflow surpassed Rs. 2 billion.

NDB Securities said ASPI closed in green as a result of price gains in counters such as Hayleys, Richard Pieris & Company and John Keells Holdings.

It said high net worth and institutional investor participation was noted in National Development Bank, John Keells Holdings, and Expolanka Holdings. Mixed interest was observed in Commercial Bank, Hayleys and Capital Alliance whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Finance non-voting.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and National Development Bank) whilst the sector index gained 0.12%. The share price of Commercial Bank increased by 40 cents to Rs. 81.30. The share price of National Development Bank recorded a gain of Rs. 2.80 to Rs. 60.20.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index increased by 2.35%. The share price of John Keells Holdings gained Rs. 3.50 to Rs. 159. The share price of Hayleys appreciated by Rs. 4.70 to Rs. 88.90. Expolanka Holdings was also included among the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 4 to Rs. 146.75.