After the significant gain recorded during the previous sessions, ASPI closed the day flat, extending the positive sentiment for the fourth straight day, displaying significant volatility as retailers remained on the sidelines waiting for a clear direction on the DDO process.
Index started on a solid footing reaching an intraday high of 8,824, yet gradually sidelined as selling pressure extended on LIOC yet another day. However, an optimistic buying spree on blue-chip counters (mainly JKH) led the market to sustain at green to close the day at 8,767, gaining 13 points.
After interest rates were revised down by 250bps at the monetary policy meeting, Treasury counters continued to witness hefty collection. Meanwhile, turnover remained at LKR 710.4 Mn (+1.7% cf. monthly average turnover of LKR 698.7Mn) and was largely led by the off-board transactions of JKH (430,000 shares at LKR 140.0 per share) which contributed 8% to the turnover.
Accordingly, the Capital Goods sector alone led the market turnover with a contribution of 50% (JKH contributed 38%). JKH and AEL led the overall turnover while JKH contributed LKR 272.1Mn (38%) and AEL contributed LKR 44.8Mn (6%). Meanwhile, BIL dominated the market volume with 5.4 Mn shares (17%) while LOFC recorded the second largest volume of 4.7Mn shares (15%). Overall volume marginally decreased compared to the previous session and recorded at 31.4Mn.
Foreign investors turned net buyers despite low participation recording a net foreign inflow of LKR 4 Mn.
(First Capital Research)