Colombo stock market rebounds; net foreign buying tops Rs. 300 m

Thursday, 29 June 2023 01:24 - - {{hitsCtrl.values.hits}}

The Colombo stock market bounced back yesterday with indices gaining on improved turnover and net foreign inflow ahead of DDR approval by Cabinet of Ministers.

The active S&P SL20 gained by 0.9% and the benchmark ASPI by 0.8%. Turnover was Rs. 2.26 billion involving 120 million shares.

Foreigners accounted for net buying to the tune of Rs. 336 million.

Asia Securities said the indices closed in green as investors braced for the DDR announcement. Front-line stocks BIL (+5.5%), LOFC (+1.9%), SEYBN (+2.0%), SEYBX (+5.7%), TJL (+1.7%), HAYL (+2.0%), TKYON (+4.0%), and TKYOX (+3.5%) recorded price gains during the session.

Sectorally, the banking sector index increased 1.1% with price gains recorded in NTBN (+1.7%), SAMP (+1.3%), SEYBX (+5.7%), DFCC (+3.8%), HNBX (+2.1%), and NDB (+1.2%). On the other hand, LIOC (-2.1%), SCAP (-1.0%), JAT (-3.1%), and AGSTN (-1.0%) settled with losses.

The breadth of the market was positive with 113 price gainers and 62 decliners.

Turnover was led by JKH (Rs. 533 million) followed by BIL (Rs. 205 million), SEYBN (Rs. 180 million), and HNBN (Rs. 179 million).

Foreigners recorded a net inflow of Rs. 336.5 million. Foreign buying topped in JKH at Rs. 318.9 million and selling topped in KHL at Rs. 23.5 million.

First Capital said the Bourse rallied with a gain fuelled by bullish optimism after a short fall on Tuesday with both ASPI and S&P SL 20 closing the week higher at 9,443 and 2,714 respectively, supported by the price gains in Banking and Diversified Financials sector counters.

Investor interest on Banking and NBFIs sectors continued to increase as investors speculated less impact on the DDO process following the clarification given by the CBSL governor on maintaining financial stability. NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Seylan Bank, and Hatton National Bank. Mixed interest was observed in Lanka IOC, Sampath Bank and John Keells Hotels whilst retail interest was noted in Browns Investments, LOLC Finance and Blue Diamonds Jewellery Worldwide.

During the month the ASPI and the S&P SL20 gained 10.4% and 12.1% respectively whilst recording an average daily turnover of Rs. 1.46 billion.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged up by 0.10%. The share price of John Keells Holdings closed flat at Rs. 150.

The Banking sector was the second highest contributor to the market turnover (due to Seylan Bank and Hatton National Bank) whilst the sector index increased by 1.15%. The share price of Seylan Bank moved up by 70 cents to Rs. 34.90.

The share price of Hatton National Bank recorded a gain of Rs. 1.25 to Rs. 139.

Browns Investments and LOLC Finance were also included among the top turnover contributors. The share price of Browns Investments gained 30 cents to Rs. 5.80. The share price of LOLC Finance appreciated by 10 cents to Rs. 5.40.

Separately hSenid Business Solutions announced its dividend of 35 cents per share.