Colombo stock market rebounds

The Colombo stock market managed to rebound yesterday with improved investor sentiment though activity levels were less than convincing.

Both indices gained by 5% whilst turnover was Rs. 589.7 million involving 45.3 million shares.

Asia Securities said the indices moved in positive territory throughout the session supported by price gains in banking sector counters COMBN (+5.6%), COMBX (+4.9%), NDBN (+5.6%), SAMP (+1.6%), SEYBN (+5.3%), HNBX (+3.9%), and NTBN (+4.1%). On similar lines, SCAP (+5.9%), AAIC (+8.2%), GLAS (+2.5%), CFVF (+3.2%), FCT (+5.0%), and CCS (+2.6%) closed with sizeable gains during the session. On the other hand, LIOC (-1.3%), BIL (-1.9%), EXPO (-2.1%), AGST (-1.7%), TKYON (-1.3%), and LOLC (-1.1%) closed in red.

COMBN (+24 points) came in as the biggest contributor to the ASPI, followed by DFCC (+9 points), and SAMP (+7 points). The breadth of the market was almost neutral with 89 price gainers and 80 decliners.

Turnover was led by HNBN (Rs. 990 m), LIOC (Rs. 60 m), and SCAP (Rs. 35 m).

Foreigners recorded a net outflow of Rs. 21.9 million. Net foreign buying topped in DIAL.N at Rs. 6.5 million and selling topped in HNB.N at Rs. 35.4 million.

Frist Capital said the bourse closed on a positive note with both ASPI and S&PSL20 indexes demonstrating a marginal upward trend during the day to close at 8,950 gaining 57 points. The Banking sector counters had revitalised interest and aided the index to perform exceptionally well, after the CBSL Governor’s comments that Sri Lanka’s public bank deposits and stability of the banking system will be safeguarded in any reorganisation of domestic debt.

Furthermore, positive investor interaction caused an upward movement in Treasury share counters as the 3M yields declined marginally at Wednesday’s auction signalling a future dip in yields.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank. Mixed interest was observed in Lanka IOC, Dialog Axiata and Melstacorp whilst retail interest was noted in Blue Diamonds Jewellery Worldwide (rights), Browns Investments and Softlogic Capital. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank) whilst the sector index gained 3.44%. The share price of Hatton National Bank increased by 50 cents to Rs. 116.50.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 0.18%. The share price of Browns Investments recorded a loss of 10 cents to Rs. 5.30.

Lanka IOC, Softlogic Capital and Dialog Axiata were also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 2 to Rs. 149.75.

The share price of Softlogic Capital moved up by 50 cents to Rs. 9. The share price of Dialog Axiata closed flat at Rs. 10.80.