CSE rebounds with higher foreign activity

• The Colombo stock market bounced back yesterday with improved investor sentiment especially by foreigners resulting in a net inflow of Rs. 300 million.
• The S&P SL20 gained by 0.8% and the benchmark ASPI by 0.7%. Turnover was Rs. 1.93 billion involving 35.3 million shares

Asia Securities said market’s momentum noticeably strengthened as investors returned to front-line stocks after consecutive sessions of subdued activity.

Market turnover picked up to a two-month high at Rs. 1.9 bn (previous session - Rs. 780 mn), a significant increase compared to the 20-day average of Rs. 957 mn. JKH led market activity (Rs. 764 mn), followed by EXPO (Rs. 227 mn) and CALT (Rs. 111 mn).

The indices moved upwards throughout the session with the ASPI approaching the 10,900 mark. The index gained 80 points (+0.7%) while the active S&P SL20 index increased by 25 points (+0.8%). CALT (+9.2%), CFVF (+9.2%), FCT (+6.3%), LOFC (+8.7%), BIL (+5.9%), and SCAP (+3.2%) closed sharply higher. Banking stocks SAMP (+1.5%), COMBN (+1.2%), HNBN (+1.7%), NTBN (+1.0%), and NDBN (+2.1%) supported the market’s momentum during the session. On the flip side, HHL (-1.3%), HAYL (-1.1%), and CICX (-3.5%) ended in red.

HNBN (+8.3 points), BIL (+8.2 points), and SAMP (+7.9 points) came in as the index movers while CINS (-8.3 points) ended as the biggest laggard on the ASPI. The breadth of the market was notably positive with 120 price gainers and 59 decliners. 

Foreigners marked a strong net inflow of Rs. 300 mn for the day, led by EXPO (Rs. 90 mn), LOLC (Rs. 82 mn) and JKH (Rs. 78 mn).

First Capital said the Bourse settled firmly in the green zone trading positively throughout the day while recording an intraday gain of 80 points, largely attributed to the positive market sentiment driven by anticipated healthy quarterly results within the Banking sector and possible reversal of losses from Hotel counters.

In response to that, HNB, SAMP and COMB largely led the ASPI. Furthermore, Hotel counters also experienced a streak of price gains, with market anticipation of improved tourist arrivals in the forthcoming months during the holiday season.

On the other hand, revitalised interest was witnessed on HHL amid speculations on a potential bid for Lanka Hospitals Corporation which is under the Government’s list of entities for divestiture. High net worth, institutional investors’ and foreign participation continued on index heavyweights through off-board transactions namely JKH and EXPO which largely backed the market turnover. Accordingly, turnover spiked to a two-month high and was largely led by the Capital Goods sector with a contribution of 44%, out of which JKH solely contributed 11% through off-board transaction.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Expolanka Holdings and Cargills. Mixed interest was observed in Capital Alliance, LOLC Holdings and Dialog Axiata whilst retail interest was noted in LOLC Finance, Browns Investments and First Capital Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 0.57%. The share price of John Keells Holdings increased by Rs. 1.75 to Rs. 194.25.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance and LOLC Holdings) whilst the sector index increased by 1.74%. The share price of Capital Alliance moved up by Rs. 5.40 to Rs. 64.30. The share price of LOLC Holdings recorded a gain of Rs. 3.75 to Rs. 391.75.

Expolanka Holdings and Cargills were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost 50 cents to Rs. 132. The share price of Cargills edged up 25 cents to Rs. 375.