Colombo stock market returns to past glory as investors get bullish
- ASPI crosses 8,000 points and turnover tops Rs. 6 b as bourse gains to 5-month high
- Active investor play on Expolanka sees stock generating Rs. 40% of turnover or Rs. 2.5 b; share price gains Rs. 8.30 (15.23%) to close at Rs. 62.80
The Colombo stock market yesterday lived up to its true expectations or relived past glory generating over Rs. 6 billion turnover with strong investor play pushing indices up.
The All Share Price Index gained by 0.7% or over 55 points to finally settle comfortable above 8,000 points at 8,022.55 points. The S&P SL20 gained higher by 1.7% or over 51 points. Turnover was a five-month high at Rs. 6.22 billion with 439 million shares traded.
The Colombo bourse however continued to suffer from aggravated net foreign selling with Rs. 1 billion for the second consecutive market day thereby propelling the year-to-date figure to surpass Rs. 32 billion. This reaffirmed the Daily FT assertion that billions in net outflow is happening in a matter of days. In July so far, the net outflow is a staggering Rs. 5.58 billion.
First Capital said the bourse reinstated its position in the green zone with ASPI crossing the 8,000 milestone and recording an index high since five-and-half months while turnover posted a near four-month record high.
“Market spiked within the first minute of trading, gaining 45 points and thereafter, moved laterally till midday, followed by a dip over the next few minutes to 7,968. Subsequently, the index regained its upward momentum for the remainder of the session, reaching an intraday peak at 8,034, before closing at 8,023, while gaining 56 points,” First Capital said.
It said turnover was led by the Transportation sector with Expolanka contributing 40% of turnover, followed by the Capital Goods sector, jointly accounting for 61%.
Asia Securities said following a gap-up opening of 45 points, the ASPI declined to 7,971 level, dragged by losses in NIFL. However, the index rebounded sharply, lifted by gains in EXPO, LOLC and BIL and closed above the psychological level of 8,000.
Turnover was recorded at a five-month high (excluding significant transactions), boosted by retail and HNI activity in EXPO. The stock contributed 40% to turnover and posted sharp gains during the session. The ASPI closed at 8,022.55, up 55.60 points (+0.70%), while the more liquid S&P SL20 index closed at 3,081.94 up 51.67 points (+1.71%).
It said the Transportation, Capital Goods, Diversified Financials and Materials sectors led activity, collectively accounting for 79.2% of turnover.
Asia also said foreigners recorded a net outflow of Rs. 1,007.3 million, while their participation declined to 8.3% of turnover (previous day 18.6%). Estimated net foreign buying topped in SPEN.N at Rs. 2.3 million and net foreign selling topped in JKH at Rs. 532.5 million.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, LOLC Holdings and Browns Investments.
It said high net worth and institutional investor participation was noted in John Keells Holdings, Commercial Bank and Teejay Lanka. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Dipped Products whilst retail interest was noted in Browns Investments, Industrial Asphalts.
The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 15.15%. The share price of Expolanka Holdings increased by Rs. 8.30 (15.23%) to close at Rs. 62.80.
The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 1.62%. The share price of John Keells Holdings gained Rs. 3 (2.16%), closing at Rs. 142 whilst foreign holdings decreased by 3,750,050 shares.
LOLC Holdings, Commercial Bank and Browns Investments were also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 18.75 (4.44%) to close at Rs. 441. The share price of Commercial Bank recorded a gain of Rs. 0.50 (0.57%), closing at Rs. 87.80, whilst foreign holdings decreased by 3,823,726 shares. The share price of Browns Investments appreciated by Rs. 0.30 (4.84%) to close at Rs. 6.50.