CSE’s ASPI reclaims psychological 10,000-point mark

With John Keells (JKH) Group gaining the spotlight following the government’s decision to issue new casino licenses under a new process, the All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) yesterday reclaimed the psychological 10,000-point milestone.

The ASPI rose 158.26 points or 1.60 percent to close at 10,072.38 points while the more liquid S&P SL20 index gained 2.44 points or 2.28 percent to close at 3,252.23 points. 

“We saw a bullish sentiment tied to JKH with the publication of casino license procedure coming into place.  On speculations that there won’t be any local debt restructuring, the banking sector stocks also moved higher,” First Capital Research (FCR) Head of Research Dimantha Mathew told Mirror Business.

“In addition, we saw a strong buying interest coming in the hotel sector with expectations of higher tourist arrivals in the next quarter,” he added.

The market turnover reached Rs.5.3 billion while the market capitalisation crossed Rs.4.4 trillion at yesterday’s market closure. 

JKH share was up by Rs.12.00 or 8.63 percent to close at Rs.151 and it was the second largest contributor to the market turnover with a 11.2 percent contribution behind ExpoLanka, despite Rs.100 million net foreign outflow.
Meanwhile, Banking stocks were up by 6.7 percent at yesterday’s market closure. In particular, shares of Sampath Bank and Commercial Bank rose by 11.8 percent and 4.5 percent to Rs.40.70 and Rs.58.50 at yesterday’s market close.

There was an increased participation of foreigners with a net inflow of Rs.792.7 million.

FCR expects the ASPI to end 9, 000-10,000 territory at end of this year due to anticipated profit-taking as well due to volatility tied to the IMF programme, although, mid to long term economic prospects remain brighter.