CSE rebounds; LOLC General Insurance boosts turnover to 3-month high

The Colombo stock market managed to close with a gain yesterday with improved investor sentiment. 

Both indices gained by 0.7% whilst turnover rose to a three-month high of Rs. 4.2 billion due to a transfer of 26% stake in LOLC General Insurance.

Asia Securities said the indices ended the week on a positive note as investor concerns over domestic debt restructuring subsided following the investor presentation held on Thursday, in which the Central Bank ensured the proposed debt restructuring strategy will not impact the country’s banking sector, which was seen as a key positive during the session.

Resultantly, banking sector stocks NDB (+4.4%), HNBN (+3.0%), HNBX (+1.4%), NTBN (+8.3%), CDBX (+22.3%), and PABC (+5.0%) scaled higher, however SAMP (-3.0%), COMBN (-2.9%), COMBX (-2.9%), and SEYBX (-2.2%) closed lower during the session.

On the other hand, front-line stocks EXPO (+5.7%), CALT (+5.5%), FCT (+3.7%), CFVF (+2.9%), LFIN (+4.0%), and AHUN (+3.3%) saw renewed retail buying while BIL (-1.6%), LIOC (-1.0%), SLTL (-2.3%), TKYON (-1.6%), RCL (-1.1%), and PACK (-1.4%) ended in red.

HNBN (+25 points), EXPO (+13 points), and COMBN (+13 points) ended as the major index drivers for the day. The breadth of the market ended positive with 93 price gainers and 73 decliners.

Turnover was boosted by off-board transactions, led by LGIL (Rs. 2.5 billion), NDB (Rs. 242 million), JKH (Rs. 217 million), CFINN (Rs. 72 million), UBCN (Rs. 30.7 million), MELSN (Rs. 27.5 million), and LFINN (Rs. 22 million).

On a monthly basis, the ASPI gained 112.61 points (+1.23%) in March 2023 while the S&P SL20 lost 113.88 points (-4.07%).

Asia said foreigners recorded a net outflow of Rs. 2.5 billion. Net foreign buying topped in MELS at Rs. 9.4 million and foreign selling topped in LGIL at Rs. 2.5 billion. LOLC Financial Sector Holdings Ltd., held 315 million shares or 26.25% stake and was the seller.

First Capital said the bourse closed in green recovering losses from the previous session amidst the renewed interest on banking sector counters after yesterday’s creditors meeting which signalled that there will be minimal impact to the industry if a DDR takes place.

The Index opened on a sharp upsurge and moved positively throughout the session despite a slight dip during the initial half hour. In addition to banking sector counters, insurance sector counters too witnessed perceptible interest while sizeable crossings took place during the day.

Activities were observed on treasury counters as interest rates continued to edge down. HNB, COMB and CDB were the top banking sector counters to contribute positively to the index as it closed at 9,301 gaining 73 points.

NDB Securities said mixed interest was observed in Sampath Bank, Expolanka Holdings and Capital Alliance whilst retail interest was noted in Browns Investments, Softlogic Capital and SMB Leasing nonvoting.

The insurance sector was the top contributor to the market turnover (due to LOLC General Insurance Limited) whilst the sector index edged down by 0.12%. The share price of LOLC General Insurance Limited increased by 30 cents to close at Rs. 7.20.

The banking sector was the second highest contributor to the market turnover (due to National Development Bank and Sampath Bank) whilst the sector index increased by 3.30%.

The share price of National Development Bank gained Rs. 1.90 to Rs. 44.90. The share price of Sampath Bank recorded a loss of Rs. 1.60 to Rs. 52.50.

John Keells Holdings and Expolanka Holdings were also included among the top turnover contributors. The share price of John Keells Holdings closed flat at Rs. 140. The share price of Expolanka Holdings appreciated by Rs. 7.50 to Rs. 138.