Friday, October 07, 2022
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Stock market sustains upward movement; foreign inflow persists

The Colombo stock market sustained its upward movement yesterday helping the benchmark index to move to the 10,000 point level once again amidst healthy turnover and net foreign inflow.

The ASPI gained 88 points to close at 10,001 points and the S&P SL20 improved by 31 points. Turnover amounted to Rs. 4.1 billion involving 147 million shares.

Asia Securities said the ASPI gained supported by price gains in LOLC (+5.6%), ALUM (+7.1%), HHL (+6.2%), SAMP (+4.4%), BIL (+3.9%), HAYL (+2.3%), LOFC (+2.3%), and ACL (+5.7%). Sectorally, plantation sector stocks KOTA (+4.5%), HOPL (+2.6%), WATA (+5.7%), and MASK (+6.2%) stayed on their recent upward trend.

Turnover was led by EXPO (Rs. 478 million), LIOC (Rs. 356 million), ACL (Rs. 302 million), and RCL (Rs. 226 million). Foreign buying in EXPO extended during the session, resulting in a net inflow of Rs. 318m. The ASPI commenced the session with a gap-up of 64 points and touched an intra-day high of 10,045 (+132 points) in the first hour of trading.

Subsequently, the index consolidated in the narrow range of 10,000-10,030. Price losses in JKH (-0.7%), MELS (-2.0%), EXPO (-1.0%), and SPEN (-1.5%) weighed significantly on the ASPI during the session. Overall, 107 stocks ended in green while 103 stocks settled with losses.

First Capital said the bourse closed in the green for the second straight session amidst mixed interest as profit booking built up in the banking sector while buying interest renewed in the plantation sector counters.

The index opened on a solid footing and reached the 10,000 level yet again as it peaked at an intraday high of 10,048. Subsequently, the index took a sideways drift through the rest of the session and finally closed the day positively at 10,001 gaining 88 points.

NDB Securities said the high net worth and institutional investor participation were noted in Expolanka Holdings, Sunshine Holdings, and Lankem Developments.

Mixed interest was observed in Lanka IOC, ACL Cables and Royal Ceramics whilst retail interest was noted in Browns Investments, Asia Siyaka Commodities and SMB Leasing (voting and nonvoting).

The capital goods sector was the top contributor to the market turnover (due to ACL Cables and Royal Ceramics) whilst the sector index gained 1.23%. The share price of ACL Cables moved up by Rs. 6 (5.69%) to close at Rs. 111.50. The share price of Royal Ceramics recorded a gain of Rs. 1.70 (4.10%) to close at Rs. 43.20.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Lankem Developments) whilst the sector index increased by 1.07%. The share price of Lankem Developments appreciated by Rs. 1.50 (4.12%) to close at Rs. 37.90.

Expolanka Holdings and Lanka IOC were also included among the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 2.25 (0.99%) to close at Rs. 224.25. The share price of Lanka IOC closed flat at Rs. 290.50.