Trading at the Colombo bourse ended the 4-day week on a positive note with both indices gaining ground. The ASPI increased 2.75% to close at 1,649.79, a historic all time high. The MPI increased 1.72% to close at 2,264.05.

Turnover increased by 8.31% to Rs. 1480.87mn from Rs. 1367.25mn recorded the previous week. Average daily turnover recorded was Rs. 370.22mn on higher average daily volumes of 12.90mn shares compared to last week’s daily average of 7.91mn shares.

Heavily traded shares for the week were Lanka IOC, JKH, Distilleries, Hayleys, SLT and Hemas Holdings. Trading on the above stocks accounted for approximately 54% of the total turnover for the week. Market activity and turnover was driven by the Power & Energy and Diversified sectors, contributing 29% and 19% respectively to total turnover.

Foreign participation amounted to approximately 23% of total turnover, which is lower than last week’s participation. Foreign investors ended the week as net buyers recording an inflow of Rs. 164.96mn compared to a net outflow of Rs. 385.98mn recorded last week.

The market has continued its upward trend this week with both indices appreciating and the ASPI ending the week on a historic all time high. The performance of the bourse is a reflection of growing investor confidence in the country’s economic and political environment. Signs of co-operation between the LTTE and the government with regard to the reconstruction efforts have further consolidated bullish investor sentiment.

Total turnover of the market was primarily driven by select stocks such as LIOC, and we can expect the market to continue its gradual upward trend in the following week with the Power and Energy and Diversified sectors gaining strength. The hotel sector has also experienced some investor interest this week depicting confidence in the revival of the tourism sector, a trend we can expect to continue in the upcoming weeks.