CSE rebounds after 12 days of declines

The Colombo stock market yesterday bounced back ending 12 days of negative spell in apparent return of bargain hunters.

The benchmark ASPI gained by 1.5% and the active S&P SL20 by 1.8%. Turnover was Rs. 1.46 billion involving 43.6 million shares.

First Capital said the broad market recovered as HNW investors displayed renewed buying interest buoyed by improved investor sentiment during the trading session. Despite low retail participation, ASPI started the day on a steady note and experienced a long-lived uptrend during the day, to close the session at 10, 837 gaining 164 points.

 The banking sector counters and index heavy weights including COMB, SAMP, MELS, CTC and HAYL emerged as the top positive contributors to the index. Turnover was 104.0% higher than the monthly average with multiple crossings accounting for 21.3% of the overall turnover. The banking sector contributed 42% to the overall turnover whilst Capital Goods and Food, Beverage and Tobacco sectors jointly contributed 38%. Foreign investors turned net sellers, recording an outflow of Rs. 68.2 million amidst low participation.

NDB Securities said indices closed in green as a result of price gains in counters such as Commercial Bank, Sampath Bank and Melstacorp.

High net worth and institutional investor participation was noted in Richard Pieris & Company, John Keells Holdings and Ceylon Hospitals. Mixed interest was observed in Hatton National Bank, Commercial Bank and Sampath Bank whilst retail interest was noted in Browns Investments, LOLC Finance and Tess Agro. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Commercial Bank) whilst the sector index gained 2.07%. The share price of Hatton National Bank increased by one Rupee to Rs. 164.50. The share price of Commercial Bank gained Rs. 2.30 to Rs. 86.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Richard Pieris & Company) whilst the sector index increased by 0.84%. The share price of John Keells Holdings closed flat at Rs. 167. The share price of Richard Pieris & Company recorded a gain of 60 cents to Rs. 20.60.

Ceylon Hospitals was also included amongst the top turnover contributors with its share price gaining by Rs. 13 to Rs. 128.50.