The Colombo stock market yesterday bounced back sharply after recent losses with local investors reverting to buying mode on value.

The active S&P SL20 Index gained by 2.78% and the benchmark ASPI by 2.5%. Turnover improved to Rs. 2 billion involving 94.3 million shares. 

Asia Securities said following five consecutive sessions of losses, the market rebounded strongly on Thursday with the indices scaling their biggest single-day gain in three weeks mainly driven by sharp price increases in front-line counters. 

SCAP (+23.8%), LOFC (+19.6%), and NTBX (+16.1%) ended markedly higher while price gains in AAIC (+9.0%), BIL (+8.9%), LIOC (+3.5%), EXPO (+2.0%), LOLC (+2.6%) and SLTL (+4.6%) strengthened the ASPI’s upward movement during the session. 

Turnover was led by SCAP (Rs. 344 million), AAIC (Rs. 253 million), JKH (Rs. 215 million), and EXPO (Rs. 206 million).  The ASPI gained 214 points (+2.5%) to close at 8,843 while the S&P S20 index closed at 2,718 (+74 points or 2.8%). VONE (+27 points), CINS (+19 points), LOFC (+17 points), and MELS (+15 points) ended as the major index movers during the session. The breadth of the market turned positive with price gainers outnumbering decliners by a wide margin of 142 to 46.

Foreigners recorded a net inflow of Rs. 0.3 million. Net foreign buying topped in SPEN at Rs. 33.9 million and selling topped in JKH at Rs. 50.2 million.

First Capital said the bourse reversed after recording 5 consecutive days of losses totalling to 359 points with a solid gain as investors yet again turned bullish on Insurance sector counters while positive developments on the economic front further uplifted the bullish sentiment.

The Index opened on a solid footing and moved on a steady upswing throughout the session after SCAP disclosed its stance on the potential sale of AAIC which reactivated buying interest among investors. 

The index-heavy weights such as LOLC and LOFC witnessed some activity following the quarter results which was released yesterday. Further, positive indications from China to support Sri Lanka’s debt restructuring process to secure the IMF board level agreement largely supported the overall sentiment as gains were observed broadly on many counters and closed for the day at 8,843 gaining 214 points. 

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Melstacorp and John Keells Holdings.

Mixed interest was observed in Softlogic Life Insurance, Lanka IOC and Asian Hotels & Properties whilst retail interest was noted in Softlogic Capital, Browns Investments and LOLC Finance. 

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index gained 5.12%. The share price of Softlogic Life Insurance gained Rs. 8.80 (8.96%) to Rs. 107.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.76%. The share price of John Keells Holdings closed flat at Rs. 140.

Softlogic Capital, Expolanka Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of Softlogic Capital increased by Rs. 2.50 (23.81%) to Rs. 13.

The share price of Expolanka Holdings recorded a gain of Rs. 3.50 to Rs. 177.25. The share price of Lanka IOC appreciated by Rs. 6.25 to Rs. 185.75. 

Bond market  activity moderates