CSE indices rebound amidst low turnover

The Colombo stock market bounced back yesterday with sharp gains in indices though turnover remained below average.

The active S&P SL20 Index was up 3% and the benchmark ASPI was up 1.86%. Turnover was Rs. 1 billion involving 45.7 million shares. Asia Securities said following three sessions of losses, the indices witnessed a brief respite on Wednesday supported by the sharp gains by EXPO (+7.7%), AAIC (+13.1%), SCAP (+12.7%), LOLC (+7.0%), and LOFC (+5.5%).

The ASPI gained 142 points (+1.9%) and the more liquid S&P SL20 index climbed more than 3% during the day. However, market turnover was recorded at relatively lower levels as retail and HNI investors maintained a cautious stance, awaiting directional cues from the macroeconomic front.

Earlier, the ASPI opened trading with an 82-point gap-up at 7,713, and crossed the 7,800 mark to scale an intra-day high of 7,820 (+189 points) in the first hour of the session. Thereupon, the index witnessed a bout of stabilisation and moved within the range of 7,750-7,800 for the remainder of the session. The breadth of the market ended positive with 130 price gainers and 42 decliners.

Asia also said foreigners recorded a net inflow of Rs. 66.7 million (MTD inflow: Rs. 204.5 million) while their participation declined to 5.3% of turnover (previous day 12.0%). Net foreign buying topped in JKH at Rs. 51.4 million and selling at MELS at Rs. 5.1 million.

First Capital said the Bourse bounced back and recorded a gain after three consecutive days of losses while registering its highest intraday gain in more than two-weeks as investors took positions and traded on index heavy weights.

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 7,773, gaining 142 points. However, turnover was at a one-month low as retailers decided to adopt a wait and see approach, seeking more clarity on the economic front.

Energy sector contributed 21% to the turnover while the Food, Beverage and Tobacco and Transportation sectors continued to dominate the turnover with a joint contribution of 36%.

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

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index gained 3.41%. The share price of Lanka IOC increased by Rs. 3.40 (5.44%) to close at Rs. 65.90.

Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 1.69%. The share price of Browns Investments moved up by 30 cents (3.57%) to close at Rs. 8.70.

Expolanka Holdings, John Keells Holdings and LOLC Finance were also included among the top turnover contributors. The share price of Expolanka Holdings gained Rs. 14 (7.75%) to close at Rs. 194.75. The share price of John Keells Holdings recorded a gain of Rs. 2.25 (1.83%) to close at Rs. 125.25. The share price of LOLC Finance appreciated by 40 cents (5.48%) to close at Rs. 7.70. Separately, Vallibel Finance announced its final dividend of Rs. 2 per share.