CSE rebounds as investors react positively to Govt.’s DDR assurance

The Colombo stock market saw a rebound yesterday with indices gaining sharply amidst improved turnover.

The active S&P SL20 rose by 2% and the benchmark ASPI by 1.5%. Turnover was Rs. 1.6 billion involving 50.3 million shares.

Asia Securities said following three sessions of losses, the indices moved upwards as investors returned to banking sector stocks following a round of profit-taking in the preceding sessions.

The banking sector index recorded a sizeable gain of 2.4% during the session on the back of price gains in COMBN (+3.4%), COMBX (+3.3%), SAMP (+3.6%), PABC (+4.2%), NDBN (+3.0%), and HNBX (+3.4%).

On the other hand, front-line stocks MELS (+4.4%), LIOC (+1.2%), DIST (+1.3%), SLTL (+8.8%), CICN (+2.2%), CICX (+3.0%), ACL (+3.9%), and BIL (+1.8%) closed in green. SAMP (+17 points), COMBN (+17 points), and MELS (+12 points) came in as the biggest index movers for the day.

Turnover was led by JKH (Rs. 378 million), MELS (Rs. 110 million), and LIOC (Rs. 90 million).

Foreigners recorded a net inflow of Rs. 21.4 million. Net foreign buying topped in HHL at Rs.

20.4 million and selling topped in MELS at Rs. 7.6 million.

First Capital said the overall market picked up during the day, as both indices ended in the green zone and ASPI gained 136 points, following the comments on the Domestic Debt Restructuring finalisation.

Banks were among the top contributors during the day, as the State Minister of Finance mentioned that there will be no haircut on domestic debt. Treasury shares also observed retail interest during today’s session, after yields further lowered during the auction held. Furthermore, revitalised interest emerged on SLTL on the back of potential privatisation.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Hemas Holdings. Mixed interest was observed in Melstacorp, Lanka IOC and Commercial Bank whilst retail interest was noted in LOLC Finance, Browns Investments and First Capital Treasuries.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 1.26%. The share price of John Keells Holdings increased by 75 cents to close at Rs. 143.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 0.46%. The share price of Melstacorp gained Rs. 2.50 to Rs. 59.60.

Lanka IOC, Commercial Bank and First Capital Treasuries were also included among the top turnover contributors. The share price of Lanka IOC moved up by Rs. 1.50 to Rs. 125.50. The share price of Commercial Bank recorded a gain of Rs. 2.20 to Rs. 66.20. The share price of First Capital Treasuries declined by 40 cents to Rs. 27.