Banks and blue-chips gradually gather momentum

The bullish trend continued in the stock market for the 9th consecutive session as investor confidence shifted favorably towards banks and blue-chip stocks as the ASPI closed in positive territory at 11,318, marking a gain of 31 points.

Index reached an intra-day high of 11,350, supported by ongoing buying activity in banking stocks, notably SAMP and COMB. Investor attention shifted away from trading stocks like LOLC, BIL, and CFVF, which had seen gains in the previous week, towards stocks such as HHL and MGT, which attracted increased buying interest. However, towards the end of the day, the momentum of the index slightly slowed down as selling pressure emerged on TILE and LWL, coinciding with XD dates. Despite this, turnover remained healthy at LKR 1.9Bn, which is 29.6% above the monthly average turnover of LKR 1.5Bn. On a positive note, foreign investor sentiment improved, with foreign investors turning into net buyers after ten consecutive sessions of selling.

VONE and LIOC led the overall turnover with VONE recording a turnover of LKR 157.9Mn (8%) whilst the latter recorded a turnover of LKR 127.2Mn (7%). Similarly, BIL dominated the market volume with 12.7Mn shares (15%) while LOFC was the second largest contributor with 7.4Mn shares (9%). First Capital Research

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