CSE rebounds amidst struggle

The Colombo stock market bounced back yesterday only to manage a marginal gain though turnover improved. 

Both indices gained by 0.3%. Turnover was Rs. 1.1 billion involving 50.2 million shares. 

Yesterday ended multi days of decline whilst the month to date till 18 October, the CSE’s value had plunged by Rs. 254 billion.

Asia Securities said following four sessions of downward momentum, the indices edged higher supported by price increases in FCT (+1.0%), COMBN (+1.5%), BIL (+2.0%), SCAP (+2.2%), PABC (+2.3%), AAIC (+1.4%), and RCL (+2.6%). However, price losses in CALT (-2.9%), EXPO (-2.5%), CTC (-2.4%), SLTL (-1.0%), and TJL (-2.1%) dragged down the ASPI during the session.

The ASPI declined to a low of 10,507 (-50 points) and then regained momentum in the second half of the session to eventually close at 10,590 (+33 points). The breadth of the market was positive with 94 price gainers and 75 decliners.

Turnover improved led by CFVF (Rs. 158mn), RIL (Rs. 131mn), and FCT (Rs. 114mn).

Asia also said foreigners  recorded a net outflow of Rs. 63.4mn. Net foreign buying  topped in AAIC at Rs. 3.2mn and selling  topped in CTC at Rs. 17.9mn.

First Capital said the Bourse bounced back and settled firmly in green as investors turned optimistic after the State Minister of Finance noted that Sri Lanka and the IMF are finalizing signing the staff-level agreement to secure the 2nd tranche of the EFF in upcoming weeks. As a result, investor interest enticed on the Banking sector mainly COMB and DFCC which positively contributed to the index whilst active investor participation persisted on Treasury counters following the first interim dividend announcement of CFVF which amounted to Rs. 12.25 per share. 

The ASPI took a reversal note, breaking the 4-day negative sentiment and closed for the day at 10,590, gaining 33 points. 

NDB Securities said high net worth and institutional investor participation was noted in R I L Property and Nations Trust Bank. Mixed interest was observed in John Keells Holdings, Lanka IOC and LB Finance whilst retail interest was noted in Browns Investments, First Capital Holdings and First Capital Treasuries. 

The Diversified Financials sector was the top contributor to the market turnover (due to First Capital Holdings and First Capital Treasuries) whilst the sector index gained 0.76%. The share price of First Capital Holdings decreased by 80 cents to Rs 50.90. The share price of First Capital Treasuries moved up by 40 cents to Rs 41.10.

The Retailing sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.24%. 

R I L Property, John Keells Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of R I L Property gained 10 cents to Rs 5.80. The share price of John Keells Holdings recorded a gain of 75 cents to Rs 191. The share price of Lanka IOC edged down Rs 10 cents to Rs 99.

Separately Bairaha Farms announce an interim dividend of Rs 3.30.