Investor sentiment at Colombo stock market turns positive  

Sentiment at the Colombo stock market returned to positive territory yesterday after multiple days of bearish sentiments though investor activity was subdued.

The benchmark ASPI gained by 1.5% and the S&P SL20 by 1%. Turnover amounted to Rs. 1.8 billion involving 81.3 million shares.

Asia Securities said following a five-day declining streak, the indices rebounded strongly as investors returned to the stocks that saw a healthy pullback in recent days, eventually prompting a broad-based pickup across sectors.

The ASPI trended upwards throughout the session and ended with a sharp 133-point gain (+1.5%) led by RICH (+8.0%), EXPO (+2.2%), MELS (+4.3%), JKH (+2.2%), LOFC (+2.8%), and LIOC (+2.3%). However, overall retail and HNI activity remained at moderate levels resulting in a moderate turnover of  Rs. 1,812 million (previous session Rs. 1,248 million) driven by EXPO (Rs. 264 million), KOTA (Rs. 105 million), and LIOC (Rs. 93 million).  The breadth of the market ended strong with 132 price gainers and 60 decliners.

Asia also said foreigners recorded a net inflow of Rs. 237.6 million while their participation increased to 7.8% of turnover (previous day 6.9%). Net foreign buying topped in EXPO at Rs. 160.2 million and selling topped in HPL at Rs. 3.9 million. First Capital said the bourse bounced back and recorded a gain after five consecutive days of losses while registering its highest intraday gain in two weeks as investors took positions and traded on index heavy weights with the speculations on the exclusion of capital gain tax from the interim budget. 

Index started off on a solid footing and maintained its steep upward trajectory throughout the session. Subsequently, the market managed to partly recoup earlier session losses and closed for the day at 8,865, gaining 133 points. Turnover was largely led by the Food, Beverage and Tobacco sector (38%) followed by the Transportation sector (15%). NDB Securities high net worth and institutional investor participation was noted in Expolanka Holdings, C T Holdings and John Keells Hotels. Mixed interest was observed in Kotagala Plantations, Lanka IOC and Watawala Plantations whilst retail interest was noted in Browns Investments, SMB Leasing and Asia Siyaka Commodities.

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Kotagala Plantations and Watawala Plantations) whilst the sector index gained 1.72%. 

The share price of Kotagala Plantations gained Rs. 0.90 (10.47%) to close at Rs. 9.50. The share price of Watawala Plantations appreciated by Rs. 10.30 (12.80%) to close at Rs. 90.80.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 2.21%. The share price of Expolanka Holdings increased by Rs. 4.75 (2.22%) to close at Rs. 218.75.

Lanka IOC and C T Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC moved up by Rs. 3.75 (2.28%) to close at Rs. 168.50. The share price of C T Holdings recorded a gain of Rs. 9.50 (6.11%) to close at Rs. 165.

Separately, Abans Electricals announced its final dividend of Rs. 5 per share.