Strong rebound at Colombo stock market

The Colombo stock market bounced back sharply yesterday thanks to renewed buying interest inspired by positive news including the Daily FT’s exclusive story on the gazetting of incentives for investors of Colombo Port City.

The active S&P SL20 shot up by 1.9% and the benchmark ASPI by 1.7%. Turnover improved to Rs. 3 billion involving 150 million shares.

Asia Securities said market regained strong momentum with the ASPI briefly reaching the 10,500 mark. Notably, investors showed a preference for heavyweights LOLC (+7.5%), BRWN (+5.3%) HAYL (+2.9%), and MELS (+1.9%) during the session. Sectorally, banking stocks COMBN (+3.2%), COMBX (+2.0%), HNBN (+2.9%), HNBX (+3.8%), UBC (+6.1%), PABC (+3.5%), SAMP (+5.2%), and SDB (+4.5%) saw steady buying from investors while plantation sector stocks HPL (+10.8%), TSML (+15.7%), CTBL (+8.2%), and TAFL (+8.1%) recorded sharp price gains amidst renewed buying interest. 

The ASPI closed out the session with a 174-point gain driven by SAMP (+28 points), LOLC (+23 points), COMBN (+20 points), and HNBN (+13 points). 

Turnover was led by JKH (Rs. 261 million), BIL (Rs. 234 million), HAYL (Rs. 215 million), and LIOC (Rs. 156 million) leading the way. The breadth of the market was strong with 159 price gainers and 42 decliners.

Frist Capital said the Bourse recorded solid gains led by active participation on banks as investors fervently collected banking counters following the continuous profit booking that persisted during the previous sessions.

“LOLC and BIL who are major investors in the Colombo Port City drew interest following the gazette issue for incentives and tax exemption,” First Capital said. It also said with tourist arrivals reaching record highs after months hotel sector counters displayed gains during the session.

In addition to banking counters, buying appetite was observed on blue chip companies too while the index closed at 10,490 gaining 174 points.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Sanasa Development Bank, and Hayleys. Mixed interest was observed in Lanka IOC, LOLC Holdings, and Commercial Bank whilst retail interest was noted in Browns Investments, LOLC Finance, and Softlogic Capital.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index gained 0.23%. The share price of John Keells Holdings decreased by 50 cents to Rs. 158. The share price of Hayleys moved up by Rs. 2.60 to Rs. 91.50.The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 1.55%. The share price of Browns Investments gained 10 cents to close at Rs. 6.70.Lanka IOC and Softlogic Capital were also included among the top turnover contributors. The share price of Lanka IOC recorded a loss of Rs. 2 to Rs. 133. The share price of Softlogic Capital appreciated by 60 cents to Rs. 12.10.