The Colombo stock market yesterday produced a late recovery to close on the up after sharp dip amidst improved local activity whilst foreigners turned net sellers

The ASPI gained by 0.7% and the S&P SL20 by 0.5%. On Monday the indices shot up by over 2%.

Turnover yesterday was Rs. 2.4 billion involving 69.4 million shares. The market also saw net foreign outflow of Rs. 477.5 million.

Asia Securities said the market showcased a strong rebound after an early decline as heavyweights led by MELS (+4.0%), LIOC (+4.0%), HAYL (+3.7%), and NEST (+6.2%) helped the indices to offset price losses recorded by banking stocks which saw profit-booking following Monday’s  sharp price increases.  

COMB (-1.1%), HNBN (-1.7%), HNBX (-5.0%), SEYBN (-1.4%), and UBC (-1.2%) moved downwards during the session while NTBN (+3.8%), PABC (+4.3%), and DFCC (+6.5%) continued their upward trend. 

Turnover was supported by JKH (Rs. 654 million), SAMP (Rs. 224 million), and MELS (Rs. 183 million). 

Asia said the ASPI opened trading with a gap-up of 30 points at 9,112 and declined steeply to 9,019 (-63 points) in the first hour of the session. 

As buying in heavyweights returned to the market, the index reversed course in mid-day trading and touched an intra-day high of 9,180 (+98 points) before settling at 9,146 (+64 points). HAYL (+15 points), MELS (+11 points), and LIOC (+9 points) were the top index movers while SPEN (-6 points), COMB (-6 points), and HNB (-5 points) ended as the major laggards for the day. The breadth of the market was positive with 103 price gainers and 73 decliners.  

Foreigners recorded a net outflow of Rs. 477.5 million. Net foreign buying topped in TKYO.X at Rs. 16.3 million and selling topped in JKH at Rs. 475.6 million.

First Capital said the ASPI extended the positive sentiment for the fourth consecutive day as investors continued to actively participate in the market. 

It said as the market gained over 450 points during the past few days, profit taking was witnessed across the board, prompting a marginal fall of the index at the early hours of trading. However, with the active collection on the blue-chip companies, the market recovered the earlier losses and closed the day at 9,146, gaining 64 points. 

First Capital also said as the secondary bond market yields fell sharply (up to 100bps compared to the previous week,) Treasury counters continued to see a bullish sentiment. 

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Sampath Bank, and John Keells Holdings. Mixed interest was observed in Ceylinco Insurance, Lanka IOC and Sri Lanka Telecom whilst retail interest was noted in Hela Apparel Holdings, Dialog Axiata and People’s Leasing & Finance. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 0.35%. The share price of John Keells Holdings decreased by 50 cents to Rs. 137.50.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 1.48%. The share price of Melstacorp moved up by Rs. 2.50 (4.30%) to Rs. 60.60.

Sampath Bank, Ceylinco Insurance and Lanka IOC were also included among the top turnover contributors. The share price of Sampath Bank closed flat at Rs. 49.00. The share price of Ceylinco Insurance edged up by 50 cents to Rs. 2,193. The share price of Lanka IOC appreciated by Rs. 7.75 to Rs. 200.25.

Bond yields rise