CSE rebounds after 3 weeks of bear run

The Colombo stock market yesterday rebounded sharply ending three weeks of bear run thanks to a change of sentiment to the better by local investors.

The benchmark ASPI gained by 1% and the active S&P SL20 nudged by 0.8%. Turnover was below lea par at Rs. 611.6 million involving 30 million shares.



Asia Securities said following eleven consecutive sessions of losses, the indices closed in green on Wednesday (03) supported by price gains in EXPO (+3.0%), BIL (+1.9%), SAMP (+1.3%), LOFC (+3.8%), SCAP (+1.2%), and AHUN (+2.1%).

HNB (+14 points) came in as the major driver of the ASPI for the day, followed by EXPO (+8 points), and VONE (+6 points). The breadth of the market was positive with 129 price gainers and 43 decliners.

Asia said turnover was led by JKH (Rs. 128 million) which saw Rs. 87 million worth of net foreign selling during the session.

Foreigners recorded a net outflow of Rs. 73.8 million. Net foreign buying topped in CIC.N at Rs. 6.6 million and selling topped in JKH at  Rs. 87.4 million.

First Capital said after a hectic routine of panic selling the market rebounded and closed the day in green after 3 weeks of losses as investors took positions in fundamentally strong shares. The optimistic sentiments were also driven by the Dialog- Airtel merger announcement yesterday which prompted investor participation, leading the market to close at 8,800, gaining 88 points. Furthermore, revitalized interest in treasury shares triggered investor interaction due to the bill auction amidst assumptions of the rates declining, in line with the inflation.

Meanwhile the turnover was recorded as LKR 611.7 million, 37% lower than the monthly average of LKR NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Royal Ceramics. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Dialog Axiata whilst retail interest was noted in Browns Investments, SMB Leasing and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index gained 0.75%. The share price of John Keells Holdings increased by 25 cents to Rs. 135.75. The share price of Royal Ceramics appreciated by 20 cents to Rs. 27.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 0.79%. The share price of Browns Investments recorded a gain of 10 cents to Rs. 5.40.

Lanka IOC and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC lost One Rupee to Rs. 158. The share price of Expolanka Holdings moved up by Rs. 4.50 to Rs. 153.