Colombo stock market rebounds

The Colombo stock market posted a recovery yesterday after Wednesday’s dip with improved turnover amidst foreign selling. 

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 0.75% or 36.85 points to close at 4,953.54 points, while the S&P SL20 Index also increased by 1.46% or 30.68 points to close at 2,126.63.

Turnover increased by 22.1% relative to Wednesday to Rs. 0.57 billion while the crossings of COMB accounted for 23.1% of the day’s total turnover. Foreign investors recorded a net outflow of Rs. 0.12 billion over the day compared to a net outflow of Rs. 0.03 billion on Wednesday.

First Capital said potential enhanced gains through the plunge in the bond yields drove the equity market back to its positive sentiment. 

It said counters with large Government Securities portfolios attracted strong buying interest among investors. 

“Index experienced a gradual upward movement since the beginning of the session reaching its intraday high of 4,965 before closing at 4,954 gaining 37 points. ASPI was uplifted predominantly due to the advances in JKH and CCS,” First Capital said. 

“Turnover recorded below the month’s trading average for the 2nd consecutive session dominated by the Banking counters while experiencing limited retail activities. Market experienced moderate foreign participation dominated by the selling side resulting in a net outflow,” it added.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as John Keells Holdings, Ceylon Cold Stores and Commercial Bank.

High net worth and institutional investor participation was noted in Hatton National Bank and Commercial Bank. Mixed interest was observed in Sampath Bank and DFCC Bank, whilst retail interest was noted in LOLC Holdings, Tokyo Cement Company and First Capital Holdings. Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in Commercial Bank.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank,

Commercial Bank, Sampath Bank and DFCC Bank) whilst the sector index gained 1.62%. The share price of Hatton National Bank increased by Rs. 2.30 (2.20%) to close at Rs. 106.80 as the share price of Commercial Bank gained Rs. 1.40 (1.93%) closing at Rs. 74.00 whilst foreign holdings decreased by 580,194 shares.

Furthermore, the share price of Sampath Bank moved up by Rs. 1.90 (1.61%) to close at Rs. 120.00 while the share price of DFCC Bank appreciated by Rs. 0.20 (0.33%) to close at Rs. 60.00.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings) whilst the sector index increased by 0.77%. The share price of LOLC Holdings recorded a gain of Rs. 2.80 (2.28%) to close at Rs. 125.60.