Bourse rallies with massive gain for fifth straight day

Bourse rallied with a massive gain fueling bullish optimism for the fifth consecutive day, surpassing and closing the day above 9,200 level after 1 ½ months.

Banking and NBFIs sectors continued to upsurge as investors speculated less impact on the above over DDO as interest rates are on the track of normalizing. Accordingly, Treasury counters too witnessed investor interest, on expectations that the weighted average yields to further trim down at the weekly T-Bill auction.

Meanwhile, retail participation was seen strengthening and was largely led by LOLC Group of companies. Moreover, turnover recovered to LKR 2.7 Bn after 2 ½-month which was largely led by multiple crossing transactions, namely LFIN (5.4 Mn shares at LKR 53.5 each), CARG (878,467 shares at LKR 250.0 each) and JKH (781,004 shares at LKR 141.5 each). Accordingly, Diversified Financials, and Capital Goods sectors contributed 32% and 16%, respectively. Following the announcements of the Rights issue, selling pressure emerged on EDEN and PALM hotels which was amongst the top 5 losers. Moreover, foreign investors continued to remain net sellers for the 6th straight day recording moderate participation while MTD net foreign outflow stood at LKR 1.1 Bn.

Foreign investors remained net sellers amidst moderate participation recording a net foreign outflow of LKR 190.0Mn. Accordingly, CARG, HAYL and JKH were the top three shares to lead foreign inflow while LFIN, SAMP and CIC were the three counters recording the largest foreign outflow.

First Capital Research