CSE rebounds with healthy turnover; foreigners net sellers

The Colombo stock market bounced back yesterday after a sharp decline on Monday as improved sentiments boosted healthy turnover though foreigners turned net sellers.

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 1.38% or 67.35 points to close at 4,947.11 points, while the S&P SL20 Index also increased by 2.00% or 41.41 points to close at 2,113.51.

Turnover increased by 38.0% relative to yesterday to amount to Rs. 1.86 billion while the crossings for the day amounted to 7.5% of the day’s total turnover.

On Monday the ASI declined 2.26% and S&P SL20 Index by 3% with the market triggering a halt after a sharper fall earlier on. Foreign investors recorded a net outflow of Rs. 210 million as against an inflow of Rs. 160 million. 

“Bourse reversed back to its positive sentiment through the buoyant reaction from less number of COVID-19 patients reported on Monday. As a result the market witnessed buying interest in the Capital Goods and Banking counters aiding the index to reach its intraday high of 4,981 during mid-day,” First Capital said.

“Later due to the fear of escalating new cases, the market moved downwards and closed at its intraday low of 4,861, gaining 67 points,” it added.

Turnover continued to be led by the Capital Goods and Banking counters amounting to 81% of the total while a substantial contribution was made by the parcel trades in Hemas Holdings and JKH, according to First Capital.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Ceylon Tobacco Company, Commercial Bank and Commercial Leasing & Finance.

High net worth and institutional investor participation was noted in Hemas Holdings, John Keells Holdings and Commercial Bank.

Mixed interest was observed in Seylan Bank, Sampath Bank and Hatton National Bank whilst retail interest was noted in Access Engineering, LOLC Holdings and Tokyo Cement Company.

Capital Goods sector was the top contributor to the market turnover (due to Hemas Holdings and John Keells Holdings) whilst the sector index gained 1.45%. The share price of Hemas Holdings increased by Rs. 1.20 (2.08%) to close at Rs. 59.00. The share price of John Keells Holdings gained Rs. 0.40 (0.37%) to close at Rs. 108.50.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Seylan Bank non-voting) whilst the sector index increased by 2.32%. The share price of Commercial Bank moved up by Rs. 2.30 (3.25%) closing at Rs. 73.10 whilst foreign holdings decreased by 1,747,629 shares. Furthermore, the share price of Seylan Bank non-voting appreciated by Rs. 1.30 (4.71%) to close at Rs. 28.90.

LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings recorded a gain of Rs. 3.70 (3.08%) to close at Rs. 123.80.