CSE rebounds as locals step up buying

The Colombo stock market bounced back yesterday with the return of bargain hunters after 3 days of dip. 

The active S&P SL20 gained by 1.4% and the benchmark ASPI by 0.9%. Turnover amounted to Rs. 3 billion involving 102 million shares.

Unlike recent days, foreigners reverted to net selling. 

Asia Securities said following three sessions of downward momentum, the indices closed in green on as banking counters COMBN (+3.4%), COMBX (+3.8%), HNBN (+3.3%), HNBX (+1.7%), SAMP (+1.8%), SEYBN (+3.4%), and SEYBX (+1.5%) regained ground after continuous profit-booking witnessed in the previous sessions. 

Notably, renewed buying interest was observed in DIST (+7.1%), CICN (+3.8%), and LIOC (+1.8%) during the session. Nevertheless, CALT (-8.7%), CFVF (-5.5%) and FCT (-6.1%), and MGT (-1.7%) saw a period of consolidation after sharp upward movement. 

COMBN (+24 points), HNBN (+17 points), and SAMP (+12 points) ended as the biggest index movers for the day. The breadth of the market was strong with 134 price gainers and 69 decliners. 

Turnover was led by CALT (Rs. 291 million), DIST (Rs. 273 million), and LIOC (Rs. 182 million). 

Foreigners ended on the selling side with a net outflow of Rs. 117 million due to net selling in COMBN (Rs. 123 million). Net foreign buying topped in HAYL at Rs. 17.3 million.

First Capital said the Bourse recouped earlier session losses and settled firmly in the green zone, gaining 106 points as investors started bargain hunting on major banks such as COMB, HNB and SAMP following the price declines witnessed during the previous sessions. 

Despite a shortfall witnessed in the beginning, index started to shoot up after mid-day supported by the revitalized interest on the retail counters. As tourist arrivals continued to surpass over 100,000 for three consecutive months despite an off-season, active collection was witnessed on Hotel sector counters. 

On the flip side, selling pressure emerged on treasury counters amidst profit-taking as the weighted average yields at the weekly T-Bill auction surged after 4 weeks. 

NDB Securities said high net worth and institutional investor participation was noted in CIC Holdings, John Keells Holdings and Distilleries. Mixed interest was observed in Capital Alliance, Lanka IOC and Commercial Bank whilst retail interest was noted in Marawila Resorts, Browns Investments and Pan Asia Banking Corporation. 

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance) whilst the sector index lost 1.26%. The share price of Capital Alliance decreased by Rs. 8 to Rs. 84.00.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Distilleries) whilst the sector index increased by 1.12%. The share price of Distilleries gained Rs. 1.70 to Rs. 25.70.

Lanka IOC, Commercial Bank and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Lanka IOC moved up by Rs. 2 to Rs. 115.25. The share price of Commercial Bank recorded a gain of Rs. 3.10 to Rs. 93.20. The share price of Hayleys Fabric declined by 80 cents to close at Rs. 45.10.