The Colombo Stock Exchange (CSE) rose for a sixth consecutive session on Tuesday, with the All Share Price Index (ASPI) gaining 592.02 points, or 2.75 percent, to close at 22,123.39.

The S&P SL20 index, which tracks 20 large listed companies, gained 224.97 points, or 3.66 percent, to close at 6,368.12. The ASPI moved above 22,100 during afternoon trading and approached 22,200 before mild profit-taking emerged near the close.

Turnover was Rs. 7.96 billion, with 253.92 million shares traded. The turnover was more than double the average daily figure so far this year. The Banks sector led activity with turnover of about Rs. 2.03 billion, while Dialog Axiata recorded the highest turnover of any single counter at Rs. 1.42 billion.

Crossings, which are large pre-arranged transactions, accounted for about 22 percent of total equity turnover. Dialog Axiata led them with about Rs. 815.48 million, followed by Commercial Bank with Rs. 309.57 million. John Keells Holdings and Swisstek also recorded block transactions.

There were 206 gainers against 45 decliners, giving an advance-decline ratio of 4.58. Foreign investors recorded a net outflow of about Rs. 1.20 billion.

Commercial Bank was the largest positive contributor to the ASPI, followed by Dialog Axiata, Hatton National Bank, Hayleys and Vallibel One. Carson Cumberbatch made the largest negative contribution.

Background

The ASPI is the main benchmark of the CSE and tracks the prices of all the shares listed on the exchange. The S&P SL20 follows a smaller group of 20 of the largest and most actively traded companies, so it tends to reflect the movements of the market leaders more closely.

Both indices are measured in points, and a daily percentage change shows how far the market moved from the previous close. A rise of more than 2 percent in the ASPI in a single session is a large move for a broad index.

Advance-decline ratio is a common measure of market breadth. A ratio of 4.58 means that roughly four and a half shares rose for every share that fell, which shows the gains were spread across many stocks and were not confined to a few heavily traded names.

Net foreign outflow means that foreign investors sold more shares than they bought during the session. Foreign flows are reported daily by the exchange and are watched because overseas buyers and sellers can influence the direction of prices in a small market.

What it means

Share prices on the CSE are set by trading, and a rise in the indices increases the market value of share portfolios held by individual investors and funds. It does not, by itself, change the earnings of the companies concerned.

Readers who hold shares directly or through unit trusts and other funds may see higher valuations after the six-session run. Because index levels can rise and fall quickly, the exchange’s daily reports remain the source for current figures.