Improved sentiments saw the benchmark All Share Index up 21 points to close at 6,499 points, the highest level in two-and-a-half years.
The ASI’s year-to-date gain was at 9.91% yesterday whilst the liquid S&P SL 20 Index has already surpassed double digit milestone and remain up 10. 85%.
Promoters of capital markets will be keenly watching how the CSE fairs today and whether improved investor sentiments will sustain to reach the important double digit year-to-date return figure.
LOLC Securities said ASI closed near psychological resistance level of 6,500 yesterday with the continued interest witnessed in big caps.
Several crossings took place as well while JKH accounted for four of them.
The counter became the top turnover contributor, reducing the foreign stake by 724,806 shares while the share price closed at Rs. 227.10 gaining 0.93%. Share price appreciation of LION and JKH contributed to ASP mostly.
Retail side was focused on PCH Holdings (12 million shares) and PC Pharma (31.8 million shares) where their stock prices increased by 24% and 22% respectively during the day. Central Investments & Finance also saw heavy trading with 12.58 million shares changing hands.
Lanka Securities said gainers surpassed losers 142 to 81, while 54 counters remained unchanged. “Cash map marginally improved to 56% from 53%,” it added.
Foreigners were net sellers yesterday for a second straight session offloading Rs. 167.9 million. But they have been net buyers of Rs. 8.9 billion so far this year.
Net outflow was largely on account of JKH (Rs. 165 million) and Distilleries (Rs. 51 million) but there was net buying on Chevron (Rs. 46.5 million) and Commercial Bank (Rs. 11.5 million).
Last month CSE said in the first five months of 2014, the Colombo stock market outperformed its major indicators from 2013, with the All Share Index (ASI) closing at 6,263.46 on 30 May, presenting a 5.9% increase and the S&P SL 20 closing at 3,454.61 on the same day, with a 5.8% increase. Yesterday’s closing confirms the market has remained buoyant for S&P SL 20 index to reach double digit levels.
The Bourse has also proved to be an attractive avenue of investment, considering the prevailing fixed deposit interest rates of 5 to 6%. CSE said by end May nearly 46% of stocks performed outstandingly, where 137, of the 293 listed, companies have given returns above 5%; including 49 companies providing an increase in returns over 20%, 51 companies appreciating by price between 10 and 20% and 37 companies increasing in value by 5 and 10%.
CSE also said the listing of new companies on the Exchange has gathered momentum within the business community, with seven companies listing and increasing the total number of listed companies to 293. In the first five months of the year, the CSE saw three equity IPO’s raising Rs. 2.58 billion, four debt IPO’s raising Rs. 5.5 billion and one equity introduction. The Rs. 2.58 billion raised through equity IPO’s is the highest since 2011.
Last year the CSE provided a 4.78% return in terms of gains in the ASI and a 5.79% gain on the S&P SL20 Index. The ASI indicated the most notable increase in comparison to previous years, where 2012 and 2011 declined by 7.1% and 8.5% respectively.