Market rebounds amid lingering uncertainty 

Despite experiencing mixed investor sentiment over continuing uncertainties, the Colombo stock market surged into a bullish run closing green yesterday.

The active S&P SL20 increased by 1.08% and the benchmark ASPI by 0.56%. Turnover was Rs. 1.3 billion involving 44.9 million shares. 

Asia Securities said following a steep early drop, the market rebounded yesterday, as investors returned to COMB after Wednesday’s sharp decline triggered by the company’s rights issue announcement. COMBN recorded a 3.4% gain after an 8.2% decline on Wednesday while COMBX increased by 1.7% following a 7.6% loss. 

After a gap-up opening, the ASPI turned volatile in early trading, dipping to an intra-day low of 12,086 (-16 points). However, the index recovered strongly as buying returned to the market, supporting the ASPI to close in green after three sessions of losses. CCS (+3.0%), WATA (+1.4%), PABC (+1.8%), DFCC (+1.7%), LIOC (+2.0%), and NDB (+1.6%) supported the ASPI’s recovery during the session. COMBN (+21 points), SAMP (+8 points), and RICH (+7 points) were the key index drivers during the session while SPEN (-6 points) ended as the biggest laggard on the ASPI. Overall, 107 counters recorded price gains while 78 settled with losses.

Asia Securities also said market turnover was led by SAMP (Rs. 265 million), MELS (Rs. 120 million), and JKH (Rs. 103 million). Crossings accounted for 35.7% of turnover with 2 crossings  each recorded in SAMPN (Rs. 231 million), MELS (Rs. 119.5 million) and JKH Rs. 85.6 million) and 1  crossing in HNBN (Rs. 28 million).

Asia also said foreigners recorded a net outflow of Rs. 105.4 million. Net foreign buying topped in MELS at Rs. 119.5 million and selling topped in SAMP.N at Rs. 235.3 million. 

First Capital said ASPI rebounded to green amid continuing uncertainties. 

“The bourse experienced a mixed sentiment amid ongoing uncertainties ultimately closing both indices in green yesterday with active participation from the HNWIs,” it added. Despite Wednesday’s panic selling following COMB’s Rights Issue announcement, COMB made a positive contribution to the index, while the Banking sector, led by NDB, SAMP, and DFCC, largely buoyed the index alongside conglomerates such as RICH and dividend declared companies. 

Accordingly, the ASPI closed at 12,170, gaining 68 points (c.0.6%), after dipping to its intraday low at 12,086 post-midday and surged into a bullish run. First Capital also added that the turnover saw a notable rebound surging by 11% WoW to reach Rs. 1.3 billion, however 38.9% lower than the month’s average at Rs. 2.1 billion. 

Off the board transactions contributed 35.7% to the total turnover. 

The Banking sector led turnover at 38%, followed by the Food, Beverage and Tobacco, and Capital Goods sectors jointly contributing 35% to the overall turnover.

NDB Securities said high net worth and institutional investor participation were noted in Sampath Bank, Melstacorp and John Keells Holdings. 

Mixed interest was observed in Commercial Bank, Hatton National Bank and Ceylon Cold Stores whilst retail interest was noted in UB Finance rights, Prime Lands Residencies and Browns Investments.

The Banking sector was the top contributor to the market turnover whilst the sector index gained 1.66%. The share price of Sampath Bank increased by Rs. 1.10 to Rs. 78.60. The share price of Hatton National Bank closed flat at Rs. 194.50. The share price of Commercial Bank appreciated by Rs. 3.50 to Rs. 107.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover whilst the sector index increased by 0.14%. The share price of Melstacorp lost 20 cents to Rs 88.80.

John Keells Holdings was also included among the top turnover contributors. The share price of John Keells Holdings moved up by one Rupee to Rs 207.

Chevron Lubricants, C.W. Mackie, Vidullanka and Sunshine Holdings declared their dividends of Rs. 4, Rs. 8, 30 cents and Rs. 2 respectively.