Rating upgrade ignites turnover to hit Bn mark after 2 days

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Bourse rallied with a gain fueled by bullish optimism continuing its winning streak from the previous session. Both the ASPI and S&P SL 20 indices closed in the green zone at 11,336 and 3,198, respectively, reflecting renewed confidence following S&P Global’s upgrade of Sri Lanka’s local currency rating from SD (Selective Default) to CCC+/C post domestic debt restructuring.

This positive sentiment also bolstered the market turnover which was recorded at LKR 1.4Bn, albeit 5.4% lower than the monthly average turnover of LKR 1.5 Bn. Furthermore, after two consecutive days of foreign buying, a shift to foreign selling was witnessed on JKH, totaling LKR 41.0Mn.

Meanwhile, MGT and DIPD gained momentum following their dividend announcements during the day.

Retail activity was evident in the Food, Beverage, and Tobacco sector, contributing 16% to the market turnover, while the Capital Goods sector took the lead, making the highest contribution at 26%. Additionally, there was a resurgence of investor interest in treasury shares, spurred by the dip in yield rates across the board after yesterday’s T-bill auction.

JKH and CTHR led the overall turnover while JKH contributed LKR217.7Mn (16%) and CTHR contributed LKR123.0Mn (9%).

Meanwhile, UBF dominated the market volume with 39.0 Mn shares (51%) while BIL was the second largest contributor with4.0Mn shares (5%). Overall volume significantly increased compared to the previous session and recorded at76.6 Mn.

Top gainers for the day were LAMB (+10%), MHDL (+10%), HUNT (+9%), MAL.X (+8%) and CTHR (+8%). Meanwhile, the top losers for the day were UBF (-20%), CSF (-20%), CHMX (-8%), ABAN (-7%) and SIGV (-6%).

Foreign investors remained net buyers amidst low participation recording a net foreign inflow of LKR 2.8 Mn.

Accordingly, CTHR, CIC.X and GLAS were the top three shares to lead foreign inflow while JKH, UBF and NT were the three counters recording the largest foreign outflow. (First Capital Holdings PLC)