Sentiment at CSE rebounds strongly, activity low

The Colombo stock market bounced back yesterday with an apparent pick up in investor sentiment though volume and value of shares traded were low.

The active S&P SL20 gained by 1.3% and the benchmark ASPI by 1%. Turnover was Rs. 788.8 million involving 23.6 million shares.

Asia Capital said following six consecutive sessions of losses, market witnessed a turnaround with the indices trending upwards throughout the session, primarily led by banks and LIOC. The ASPI gained 123 points (+1.2%) while the S&P SL20 index gained 40 points (+1.3%). LIOC (+6.6%), SAMPN (+3.4%), NDB (+2.6%), HNBN (+1.7%), COMBN (+1.9%), SEYBN (+2.2%), SEYBX (+2.9%), DFCC (+3.1%), and NTBN (+2.5%) led the upward momentum in the ASPI during the session. 

SAMP (+17 points), COMBN (+10 points), and LIOC (+9 points) came in as the biggest contributors to the ASPI. The breadth of the market turned positive with 119 price gainers and 54 decliners.

Nevertheless, activity in the market remained moderate. Off-board transactions contributed 15.2% to turnover (MELS-Rs.120mn).

First Capital said Bourse returned to green following two consecutive sessions of losses as investors displayed buying interest throughout the day, resulting in a steep and steady upsurge in ASPI while recouping previous losses to close at 10,771 with a sharp gain of 123 points. Banking sector counters experienced revitalised interest during the day with positive expectations on quarterly results whilst SAMP, COMB and HNB were amongst top contributors to the hike in ASPI. 

Investors collected on Hotel sector counters ahead of the holiday season, anticipating inbound arrivals to climb high in the months to come. LIOC too attracted sizeable buying appetite owing to World Banks expectation of oil prices soaring to $ 150 a barrel amidst the Israel-Hamas war. 

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, John Keells Holdings, and Ceylinco Insurance nonvoting. Mixed interest was observed in Lanka IOC, Ceylon Grain Elevators and Browns Investments whilst retail interest was noted in Galadari Hotels, Blue Diamonds Jewellery Worldwide and LOLC Finance.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Melstacorp, Ceylon Grain Elevators and Browns Investments) whilst the sector index gained 0.62%. The share price of Melstacorp gained Rs. 1 to Rs. 79.

The share price of Ceylon Grain Elevators recorded a gain of Rs. 4.25 to Rs. 170.25. The share price of Browns Investments appreciated by 10 cents to close at Rs. 5.20. 

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index

increased by 6.08%. The share price of Lanka IOC increased by Rs. 7 to Rs. 113.75. John Keells Holdings was also included among the top turnover contributors. The share price of John Keells

Holdings closed flat at Rs. 192.25.