Colombo stock market’s memorable run persists

Colombo stock market

Source:FT

Turnover soars to 6-month high of Rs. 16.5 b as investors remain bullish
Indices close on the up despite mid-day profit taking
Expolanka stretches its market leadership further

The Colombo stock market sustained its super momentum yesterday with new high turnover ending a memorable week.

The All Share Price Index gained by 10.6% and the S&PSL20 improved by 18 points or 0.5%. Earlier in the day, ASPI crossed the 9,000 points mark but profit taking brought it down to finish the day at 8,931 points with a YTD return of 31.8%.

For the week, the ASPI gained 691.27 points (8.39%) while the S&P SL20 gained 293.61 points (9.62%).

Turnover yesterday shot up to Rs. 16.5 billion, highest since 1 February this year. During the week, turnover averaged Rs. 11 billion.

Expolanka continued to be the star stock with 32.8 million shares changing hands via 14,179 trades for Rs. 5 billion. The price gained by 1.7% or Rs. 2.50 to close at Rs. 149.25 but it touched an intra-day high of Rs. 164.75. Market capitalisation was Rs. 291.7 billion.

LOLC, too, gained by 9% or Rs. 48.50 to close at Rs. 572.25 with 1.6 million shares traded for Rs. 921.4 million. It touched an intra-day high of Rs. 584.50.

Browns Investments saw 330 million of its shares change hands via 9,965 trades for Rs. 2.9 billion. The share price gained by 23% to Rs. 9.50.

Hayleys saw further interest with 15 million of its shares changing hands via 4,005 trades for Rs. 1.7 billion. The share gained by 7.5% or Rs. 8 to Rs. 113.75 but touched a high of Rs. 119.50.

Hayleys Group›s Dipped Products also figured among top turnover generators with Rs.1.68 billion with 26 million shares traded and share up 11.5% to Rs. 65.80.

First Capital said Bourse continued to exhibit a bull run for the fifth consecutive day by successfully settling in the green territory and surpassing yesterday’s all-time index high, while registering a new record high turnover of almost seven months. Index began trading on a bullish note, gaining 143 points within the initial minutes of trading but subsequently succumbed to selling pressure during mid-day, displaying a downtrend, followed by a sideways movement, closing at 8,931, gaining 11 points. Turnover was boosted by high retail participation.

The Transportation sector dominated turnover, followed by the Food, Beverage and Tobacco sector accounting for a joint contribution of 50%. Foreign investors turned net buyers while recording low participation.

Asia Securities said following the sharp gains recorded over the week, market witnessed profit taking during the session yesterday as the ASPI declined after crossing of 9,000 levels, weighed by price losses in CLC, however it managed to close the session in green, supported by price gains in BIL and LOLC.

“With a strong gap-up of 144 points, the ASPI surpassed the 9,000 mark and touched an intra-day high of 9,064 within the first few minutes of trading, however snapped most of its early gains and gradually declined to a low of 8,899 (-165 points) as investors began realising gains on EXPO which posted a 20% gain on Thursday,” Asia said.

It also said the index gained momentum during the afternoon session with retail and HNI buying interest shifting to BIL, LOLC and DIPD and gained 32 points to close at 8,931. BIL and LOLC dominated the ASPI’s movement, collectively contributing 110 points, offsetting a -73 contribution from CIC to the index. Turnover was recorded at a new six-month high, surpassing the level recorded on Monday, driven by activity in EXPO, BIL, HAYL and DIPD.

Foreigners recorded a net inflow of Rs. 12.4 million while their participation declined to 0.7% of turnover (previous day 2.3%). Net foreign buying topped in LOFC at Rs. 28.4 million and net selling topped in DIAL at Rs. 15.6 million.

NDB Securities said the ASPI edged up as a result of price gains in counters, such as Browns Investments, LOLC Holdings, and Hayleys.

It said high net worth and institutional investor participation was noted in Colombo Land and Development, Hayleys and Dipped Products. Mixed interest was observed in Expolanka Holdings, Browns Investments and Sanasa Development Bank whilst retail interest was noted in Lanka Orix Finance, SMB Leasing non-voting and Industrial Asphalts.