Colombo stock market rebounds; Dialog draws Rs. 404 m net foreign buying

The Colombo stock market bounced back yesterday after three days of decline as investor sentiment showed signs of recovery.

The active S&P SL20 gained by 0.9% and the benchmark ASPI by 0.3%. Turnover was Rs. 2.78 billion involving 140.4 million shares.

Asia Securities said the indices staged a robust intra-day recovery to return to positive territory after three sessions of downward movement. The ASPI dropped to a low of 12,285 (-69 points) at market open, however bounced back supported by banking counters NDB (+2.3%), HNBN (+2.4%), NTBN (+2.2%), SAMP (+1.7%), DFCC (+1.6%), and PABC (+3.5%). The ASPI eventually closed out the session at 12,397 (+43 points). 

HNBN (+15 points), SAMP (+10 points), and COMBN (+6 points) ended as the top contributors to the ASPI. Overall, 80 stocks ended in green while 97 settled with losses.

Turnover was led by DIAL (Rs. 607 million), LIOC (Rs. 125 million), and BIL (Rs. 99 million). 

Asia also said foreigners recorded a net inflow of Rs. 371 million. Net foreign buying topped in DIAL at Rs. 404 million and selling topped in DFCC at Rs. 40 million.

First Capital said after 3 consecutive sessions in red, the broader market closed the day positive, with both indices closing in green territory. The positive sentiment in the market today was largely due to active collection of blue-chip shares, after witnessing continuous selling pressure during the past few days. Despite the lacklustre sentiment observed at the beginning, momentum shifted post-mid-day as the bourse saw a gradual uptick, buoyed by active involvement from retail investors. Ultimately, the index closed at 12,397, registering a gain of 43 points from its earlier low. Amidst ongoing market uncertainties, trading activity exhibited notable signs of revival, with heightened investor interest in Banking sector counters like HNB, SAMP, COMB, and NDB. 

The Telecommunication sector emerged as a significant contributor, representing 22% of the turnover, followed closely by the Banking and Capital Goods sectors, jointly constituting 34%. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Aitken Spence and Lanka Milk Foods. Mixed interest was observed in Dialog Axiata, Lanka IOC and National Development Bank whilst retail interest was noted in Browns Investments, LOLC Finance and Co-Operative Insurance Company. 

The Telecommunication Services sector was the top contributor to the market turnover (due to Dialog Axiata) whilst the sector index gained 0.46%. The share price of Dialog Axiata closed flat at Rs. 11.50.

The Banking sector was the second highest contributor to the market turnover (due to National Development Bank) whilst the sector index increased by 1.45%. The share price of National Development Bank recorded a gain of Rs. 1.80 to Rs. 80.

Lanka IOC, Browns Investments and Aitken Spence were also included amongst the top turnover contributors. The share price of Lanka IOC gained Rs. 2 to Rs. 132.50. The share price of Browns Investments closed flat at Rs. 6.60. The share price of Aitken Spence appreciated by 25 cents to Rs. 130.25.

Separately Ceylon Cold Stores and Lion Brewery announced their dividends of 89 cents and Rs. 12.50 per share respectively.