Colombo stock market rebounds marginally

The Colombo stock market rebounded marginally yesterday with improved investor sentiment.

Benchmark ASPI gained by 25.8 points or 0.2% and the S&P SL20 improved by 5 points or 0.16%. Turnover was Rs. 1.1 billion involving 35.3 million shares.

Asia Securities said the indices closed higher on yesterday, supported by price gains in SCAP (+5.2%), AAIC (+4.5%), AHUN (+4.2%), COMBN (+1.9%), MGT (+1.1%), ACL (+2.3%), JAT (+2.3%), and WIND (+1.6%). On the flipside, LIOC (-1.7%), EXPO (-1.1%), CFVF (-2.5%), FCT (-1.0%), and CCS (-1.0%) closed in red. The breadth of the market turned positive with 108 price gainers and 68 decliners.

Turnover improved to Rs. 1.1 billion (previous session - Rs. 900 million) with off-board transactions continuing on MELS (Rs. 227 million). COMB (+10 points) came in as the major index mover, followed by BREW (+9 points), and SAMP (+5 points).

Foreigners recorded a net outflow of Rs. 67.7 million. Net foreign buying topped in ASIR.N at Rs. 3 million ($ 9k) and selling topped in DIST.N at Rs. 64.8 million ($ 200k). 

First Capital said the market embarked on a bullish charge as the opening bell rang in the morning and gradually settled into a more subdued pace with subtle volatility during the latter part of the session, marked by heightened investor interest on banking and index-heavy weights. The market eventually closed the day in the green zone at 11,274, bagging a gain of 26 points. 

There was active investor engagement in SCAP and AAIC following the announcement of the Rs. 293.0 million Bata Shoe Company acquisition, while MELS and DIST garnered investor interest due to their attractive share valuations. 

Turnover reached a 3-day high, albeit 43% lower than the monthly average turnover of Rs. 1.9 billion, primarily driven by crossing transactions. The Food, Beverage, and Tobacco sector, in tandem with the Banking sector, collectively accounted for a significant 53% contribution to the overall turnover throughout the day. 

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Distilleries, and Windforce. Mixed interest was observed in Lanka IOC, Commercial Bank and Hatton National Bank whilst retail interest was noted in Softlogic Capital, Browns Investments and Marawila Resorts. 

The Food, Beverage, and Tobacco sector was the top contributor to the market turnover (due to Melstacorp and Distilleries) whilst the sector index gained 0.73%. The share price of Melstacorp edged up by 10 cents to Rs. 87.00. The share price of Distilleries gained 30 cents to Rs. 27.10.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank and Commercial Bank) whilst the sector index increased by 0.56%. The share price of Hatton National Bank recorded a loss of 50 cents to Rs. 169.50. The share price of Commercial Bank appreciated by Rs. 1.70 to Rs. 89.

Lanka IOC was also included amongst the top turnover contributors. The share price of Lanka IOC moved down by Rs. 2 to Rs. 116.25.