CSE rebounds in tandem with improved investor sentiment

The Colombo stock market bounced back yesterday enabling it to close the week on the up thanks to a rebound in investor sentiment.

The benchmark ASPI gained by 1% and the active S&P SL20 by 1.6% yesterday and finished the Vesak holidays-shortened week with 0.2% and 0.8% respectively. Turnover yesterday amounted to Rs. 1.46 billion involving 109 million shares. For the week, turnover averaged Rs. 1.28 billion.

Asia Securities said the market saw a positive session after two days of downward movement with the ASPI reclaiming the 12,300-mark driven by price increases in HNBN (+1.8%), NTBN (+2.7%), PABC (+1.3%), ACL (+1.6%), and LOFC (+4.7%). 

The ASPI gained 132 points during the session rebounding from a 103-point loss recorded in the previous two sessions. 

COMB (+15 points), HNB (+11 points), and LOLC (+9 points) came in as the major index drivers of the ASPI. The breadth of the market was positive with 135 price gainers and 38 decliners.

Market turnover remained moderate supported by HNBN (Rs. 226 million), JKH (Rs. 133 million), and NTBN (Rs. 99 million). Off-board transactions contributed Rs. 243 million (17% of turnover) to turnover mainly led by HNBN (Rs. 78 million), JKH (Rs. 52 million), and TAP (Rs 28 million). 

Foreigners recorded a net outflow of Rs. 56.6 million. Net foreign buying topped in GRAN at Rs. 7.9 million and selling topped in JKH at Rs.13.3 million.

First Capital said the broader market exhibited a long-lived bullish sentiment throughout the trading day with active participation of the HNWIs closing both indices in green. Banking sector counters like COMB, HNB and NDB and conglomerates such as LOLC and JKH led the market activity today contributing to both turnover and index. Accordingly, the ASPI closed the short week at 12,349 gaining 132 points (1.1%).

“This uptick signals a potential recovery from the recent downward trend that had persisted over the past few days. The decline in rates observed in yesterday’s treasury bill auction, coupled with the looming CBSL policy meeting, likely contributed to this positive momentum,” First Capital said. Turnover saw a slight recovery from yesterday with a 12% increase, reflecting positive sentiment in the market. Banking sector led turnover at 32%, followed by the Capital Goods and Diversified Financials sectors jointly contributing to 34% of overall turnover.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, John Keells Holdings and Ambeon Capital. Mixed interest was observed in Nations Trust Bank, Hayleys and LOLC Finance whilst retail interest was noted in LVL Energy Fund rights, Renuka Agri Foods and Browns Investments.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Nations Trust Bank) whilst the sector index gained 1.69%. The share price of Hatton National Bank increased by Rs. 3.50 to Rs. 198.25. The share price of Nations Trust Bank moved up by Rs. 3.25 to Rs. 124.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index increased by 0.93%. The share price of John Keells Holdings gained Rs. 1.75 to Rs. 208.75. The share price of Hayleys recorded a gain of Rs. 1.20 to Rs. 93.80.

Ceylon Land and Equity was also included among the top turnover contributors. Its share closed flat at Rs. 8.40.