Tuesday Dec 03, 2024
Tuesday Dec 03, 2024
Friday, 30 October 2020 00:20 - - {{hitsCtrl.values.hits}}
The Colombo stock market bounced back strongly yesterday after its dip on Wednesday as bargain hunters stepped up buying.
The All Share Price Index gained by over 2% or 126 points and the S&P SL20 index gained nearly 2% or 43 points. On Wednesday the ASPI dipped by 1%.
Turnover yesterday was higher at Rs. 1.64 billion as against Rs. 1.2 billion. Some analysts linked the rebound to ensure better prices at month end as it was the last day of trading for October.
However, in October the ASPI and the S&P SL20 recorded monthly losses of 4.32% and 7.35% respectively, with an average daily turnover of Rs. 2.91 billion, according to NDB Securities.
During the week, the ASPI and the S&P SL20 dropped by 0.73% and 0.68% respectively, whilst recording an average daily turnover of Rs. 1.25 billion.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as Ceylon Tobacco Company, Bukit Darah and Expolanka Holdings.
First Capital said earnings season optimism renewed retail buying interest, reverting the market to the positive sentiment.
“The index witnessed a continuous uptrend since the beginning of the session and closed at 5,727 with an advance of 126 points,” it said.
Parcel trades in JKH boosted turnover, amounting to 10% of total. Materials sector counters dominated the turnover for the session, contributing 43%, primarily led by Tokyo Cement.
First Capital also said the market saw the month to date net foreign outflow top Rs. 5 billion.
With a net outflow of Rs. 467.6 million yesterday, the year-to-date figure was Rs. 45.2 billion.
Asia Securities said strong earnings results boosted activity in manufacturing stocks and reinforced expectations for the sector. Turnover remained lower than previous weeks however, as investors remained watchful ahead of the long weekend, it added.
NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Tokyo Cement Company non-voting and voting and Expolanka Holdings, whilst retail interest was noted in Dipped Products, Chevron Lubricants and Dialog Axiata.
The Materials sector was the top contributor to the market turnover (due to Tokyo Cement Company non-voting and voting and Dipped Products), whilst the sector index gained 5.79%.
The share price of Tokyo Cement Company non-voting increased by Rs. 4.60 (9.37%) to close at Rs. 53.70. The share price of Tokyo Cement Company moved up by Rs. 5.30 (9.22%) to close at Rs. 62.80.
Analysts attributed the gains to impressive quarterly earnings reported by Tokyo Cement.
The share price of Dipped Products appreciated by Rs. 14.40 (4.80%) to close at Rs. 314.30.
According to NDB Securities capital goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index increased by 2.00%. The share price of John Keells Holdings gained Rs. 0.40 (0.31%) to close at Rs. 130.90.
Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a gain of Rs. 1.10 (6.47%) to close at Rs. 18.10.
Separately Chevron Lubricants announced an interim dividend of Rs. 3.50 per share.
