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Stock market starts June on a positive note

The Colombo stock market began the month of June on a positive note, continuing the momentum enjoyed last month.

The All Share Price Index improved by 46 points or 0.6% and S&P SL20 gained by 0.9% or 28 points.

Turnover was Rs. 2.9 billion, slightly lower than Monday’s Rs. 3 billion-plus figure. Volume amounted to 111 million shares.

LOLC, which on Monday announced Sri Lanka’s biggest ever corporate profit of Rs. 57 billion (pre-tax) and Rs. 53 billion (post-tax), gained by only 2.5% or Rs. 8.75 to close at Rs. 358.75. However, deals on LOLC accounted for 21% of turnover or Rs. 622 million. Perhaps in anticipation of astonishing results, LOLC on Monday gained by 3.47% or Rs. 11.75.

In May, ASPI gained 195.24 points or 2.71%, while the S&P SL20 gained 109.56 points or 3.82%. The CSE in the first five months saw turnover soar to a record of Rs. 414.5 billion, surpassing 2020’s full year figure of Rs. 396 billion.

First Capital said the Bourse boosted an optimistic sentiment by closing the session in the green, successfully fostering the market rally for the fifth consecutive session.

“ASPI displayed a volatile movement over the first hour of trading prior to a steep upward trend exhibited during mid-day. Turnover was recorded at a strong level of Rs. 2.9 billion for the third straight day, led by the Diversified Financials sector closely followed by the Capital Goods sector, accounting for a joint contribution of 51%.,” First Capital added.

Asia Securities said following consecutive sessions of price gains, market consolidated during early hours as investors realized gains from recent price increases in RCL and LWL.

“However, the indices rebounded quickly to return to green territory led by price gains in retail active counters such as LOLC, BIL and MGT,” Asia added.

It said foreigners recorded a net outflow of Rs. 42.8 million while their participation declined to 4.0% of turnover (previous day 7.5%). Estimated net foreign buying topped in HNB.N at Rs. 17.2 million and net foreign selling topped in HAYL at Rs. 50.8 million.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Ceylon Tobacco Company and Browns Investments.

It said high net worth and institutional investor participation was noted in Commercial Bank and Royal Ceramics. Mixed interest was observed in Lanka Walltiles, LOLC Holdings and Dipped Products, whilst retail interest was noted in Hayleys Fabric, Raigam Wayamba Salterns and Browns Investments.

The Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings), whilst the sector index gained 1.73%.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics and Lanka Walltiles), whilst the sector index decreased by 0.21%. The share price of Royal Ceramics lost Rs. 1.50 (3.77%) to close at Rs. 38.30. The share price of Lanka Walltiles declined by Rs. 1.80 (2.83%) to close at Rs. 61.90.

Dipped Products and Browns Investments were also included amongst the top turnover contributors. The share price of Dipped Products moved up by Rs. 0.10 (0.19%) to close at Rs. 51.90. The share price of Browns Investments recorded a gain of Rs. 0.20 (3.17%) to close at Rs. 6.50.

Separately, Vallibel One and United Motors Lanka announced their final dividends of Rs. 1 each.

(FT)