Highest single day gain in six years, stocks surge | Sunday Observer

Highest single day gain in six years, stocks surge

The market continued to gain momentum during last week with the benchmark all share price index (ASPI) rising by 4.5% Week on Week, (WoW) to close at 6092 breaking the key resistance level of 6000 while the S&P SL 20 index also rose by 7.0% to close at 3208. Consolidated turnover reached Rs 9.9 billion for the week (+215%WoW) on the back of notable trading in John Keells Holdings, Hatton National Bank, Commercial Bank and Chevron Lubricants which together accounted for 49% of the turnover. Foreigners remained active and closed as net sellers for the week.

“Approaching the key 6500 resistance level, we expect the equity markets to remain active, however intermittent bouts of profit taking could slow down growth temporarily. We advise investors to invest in fundamentally robust stocks with a long term investment horizon,” Asset Trust Management (Pvt) Ltd said in a market analysis report.

Stocks ballooned 2.70% and crossed the 6,000 bar on Thursday, the highest single-day gain in six years, in a growing sign of market and investor confidence in the midst of the latest political developments in the country.

Ravi Abeysuriya, President, Colombo Stockbrokers Association, said there has been some activity in the Colombo Stock Exchange after a lull period although it is mainly dominated by retail investors who only account for a small percentage of the turnover.

“The real revival in market activity will commence only when institutional and foreign investors are active,” he added.

First Capital Research said in a report on Friday, “Market ended in the red mainly dragged down by big cap JKH and DIST. The ASPI witnessed a surge of 54 points in the first 10 minutes of trading to 6,166, thereby, a continuous downtrend throughout the day reaching an intraday low of 6,084 prior to closing for the day at 6,092 losing 22 points. Nearly 49% of turnover was derived from crossings while volume dipped compared to the previous day. A net foreign inflow was recorded after 15 consecutive days of outflows amidst high foreign participation.” 

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