Stock market remains bullish with high turnover

The Colombo stock market remained bullish yesterday with indices up and higher turnover.

The active S& P SL20 Index gained by 2.4% and the benchmark ASPI by 1%. Turnover was Rs. 3.3 billion involving 85.6 million shares.

Asia Securities said following a brief dip after market-open, the indices continued to move upwards throughout the session with sharp gains recorded in LIOC (+16.2%), LOLC (+15.1%) and LLUB (+16.6%). Turnover remained above Rs. 3 billion for the third consecutive day as activity levels among retail and HNI investors remained strong.

LIOC accounted for much of the activity (45.6% of overall turnover) with EXPO recording a significantly lower contribution at 9.6%. JKH and MELS continued to witness strong volumes, as the broad-based pickup in turnover across sectors continued. The ASPI opened higher at 8,368, briefly dipping to 8,317 before gaining momentum with a steady upward trajectory to reach a peak of 8,479. The index closed below this peak level at 8,423. LOLC was the highest contributor to the ASPI (+52 points), followed by LIOC (+24 points) and LLUB (+15 points). Market breadth was positive with 104 counters gaining and 76 declining.

Asia also said foreigners recorded a net outflow of Rs. 62.4 million while their participation declined to 3.7% of turnover (previous day 4.9%). Net foreign buying topped in BFL at Rs. 18.5 million and selling topped in MELS at Rs. 97.4 million.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp and Bairaha Farms. Mixed interest was observed in Lanka IOC, Expolanka Holdings and John Keells Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and Agstar.

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index gained 15.15%. The share price of Lanka IOC increased by Rs. 18.25 (16.15%) to close at Rs. 131.25.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 0.60%. The share price of Melstacorp recorded a gain of Rs. 1.30 (2.91%) to close at Rs. 46.

Expolanka Holdings, John Keells Holdings and LOLC Holdings were also included among the top turnover contributors. The share price of Expolanka Holdings lost Rs. 1.50 (0.73%) to close at Rs. 203. The share price of John Keells Holdings closed flat at Rs. 119. The share price of LOLC Holdings appreciated by Rs. 76.50 (15.09%) to close at Rs. 583.50.