The Colombo Stock Exchange kicked off the week with a bullish trend, fueled by continued investor confidence and activity. Both main indices, the ASPI and the S&PSL, witnessed gains exceeding 0.7%. Total market turnover amounted to Rs. 1.95 billion, with over 151.4 million shares changing hands.
Analysts at Asia Securities attributed the market’s upward trajectory to sustained buying interest in the LOLC group for the second consecutive session. The ASPI breached the 11,100 mark, with significant gains from BIL (+5.6%), LOFC (+1.8%), UAL (+13.2%), SCAP (+6.2%), AEL (+5.1%), and WATA (+6.4%). Notably, the market displayed a positive breadth with 124 shares experiencing price increases compared to only 75 decliners.
Market turnover was led by BIL (Rs. 191 million), LOFC (Rs. 168 million), and UAL (Rs. 115 million). Foreign investor participation, however, saw a net outflow of Rs. 27.1 million. While COMB.N led foreign buying at Rs. 15 million, HHL witnessed the highest foreign selling at Rs. 28.5 million.
First Capital highlighted the bourse’s positive performance for the sixth consecutive session, closing at 11,125, a 5-month high, surpassing the 11,000 mark. This optimism was primarily driven by selected banking sector counters, particularly COMB and SAMP. Additionally, UAL and CTC also contributed significantly to the index, fueled by investor activity in anticipation of their upcoming XD dates on March 12th.
UAL’s robust performance was likely influenced by its position as a leading contender in the Sri Lanka Insurance Corporation (SLIC) sale. The tourism sector continued its positive momentum, bolstered by strong tourist arrivals and a corresponding surge in tourism earnings for February, which reached $345.7 million, reflecting a 113.9% year-on-year increase.
NDB Securities observed high net worth and institutional investor activity in Lanka Walltiles, Lanka IOC, and Hatton National Bank. The report also noted mixed interest in Browns Investments, LOLC Finance, and Union Assurance, while retail investor interest was evident in Amana Bank, Softlogic Capital, and Marawila Resorts.
The Food, Beverage & Tobacco sector emerged as the top contributor to market turnover, driven by Browns Investments and Lanka Milk Foods. The sector index witnessed a 0.34% increase. However, the share price of Browns Investments rose by only 30 cents to Rs. 5.70, while Lanka Milk Foods experienced a decline of 60 cents to Rs. 27.40.
The Diversified Financials sector, led by LOLC Finance, was the second-highest contributor to market turnover. The sector index edged up by 0.25%, with LOLC Finance’s share price gaining 10 cents to Rs. 5.70. Union Assurance and Lanka Walltiles were also among the top turnover contributors, with their share prices increasing to Rs. 56.60 and Rs. 53, respectively.