CSE posts marginal rebound after 2 days of dip

The Colombo stock market yesterday bounced back marginally after two days of decline due to profit taking whilst activity levels were moderate. 

The active S&P SL20 Index gained by 0.5% or 15 points and the benchmark ASPI inched up by 3 points or 0.04%. Turnover was Rs. 2.7 billion involving 115.6 million shares. 

Foreigners continued their buying rally for the third consecutive day.

Asia Securities said the indices oscillated between gains and losses as front-line stocks showcased a mixed performance amid a slowdown in overall activity in the market. LIOC (+1.1%), LOLC (+3.4%), EXPO (+0.4%), BIL (+1.2%), LOLC (+3.4%), and AAIC (+2.2%) ended in green while price losses in JKH (-0.2%), HNB (-4.4%), HAYL (-0.7%), COMB (-2.5%), and AGST (-4.4%) dragged the ASPI down during the session. 

Turnover was led by LIOC (Rs. 579 million), EXPO (Rs. 313 million), and LDEV (Rs. 208 million). Following a sharp 100-gap up opening, the ASPI declined to a low of 8,886 (-21 points) before oscillating in the narrow range 8,900-8,950. CINS ended as the biggest laggard on the ASPI, contributing 30 negative points to the index. The breadth of the market turned positive 115 gainers and 92 decliners.

Asia also said foreigners recorded a net inflow of Rs. 83.2 million while their participation increased to 3.9% of turnover (previous day 2.2%). Net foreign buying topped in JKH at Rs. 63.6 million and selling topped in LDEV at Rs. 12.3 million.

First Capital said ASPI displayed a downward trend during today's trading session, and yet managed to recover part of the lost momentum and close flat for the day after slight buying interest was seen predominantly on mid-cap counters. Index opened with a steep rise and moved amidst moderate volatility throughout the day with distinct buying interest in the plantation and apparel sector.

However, retail favourite EXPO and LIOC continued to dominate the turnover and closed the day flat while the index closed at 8,911 gaining 3 points. SLTL was placed amongst the top contributors to the ASPI in the interest of a possible privatisation of the company. 

Turnover skid to a two-week low and registered at the same level with the monthly average turnover of Rs. 2.7 billion, after record-high levels of turnover seen during the last week. Food, Beverage and Tobacco sector and Energy sector dominated overall turnover with a joint contribution of 46%. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Hatton National Bank, and Sampath Bank. Mixed interest was observed in Lanka IOC, Expolanka Holdings and LOLC Holdings whilst retail interest was noted in Browns Investments, Lankem Developments and Renuka Agri Foods. 

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Lankem Developments and Browns Investments) whilst the sector index gained 1.17%. The share price of Lankem Developments moved up by Rs. 4.20 (23.73%) to close at Rs. 21.90. The share price of Browns Investments appreciated by 10 cents to close at Rs. 8.20.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 1.12%. The share price of Lanka IOC increased by Rs. 2 (1.08%) to close at Rs. 188.

Expolanka Holdings and John Keells Holdings were also included among the top turnover contributors. The share price of Expolanka Holdings gained 75 cents to close at Rs. 211.75. The share price of John Keells Holdings recorded a loss of 25 cents to close at Rs. 127.75.

Separately Chrissworld PLC announced its first and final dividend of two cents per share.