CSE rebounds on moderate activity

Saturday, 2 September 2023 01:23 - - {{hitsCtrl.values.hits}}

The Colombo stock market bounced back yesterday though investor activity was moderate.

The ASPI gained by 0.7% and ASPI by 0.4%.Turnover was Rs. 1.8 billion involving 52.7 million shares.Asia Securities said following five sessions of downward momentum, the indices closed higher on with the ASPI closing with a gain of 42 points (+0.4%) and the S&P SL 20 index increasing 23 points (+0.7%).

HAYL (+5.2%) saw renewed buying interest from investors during the session resulting in the stock topping the turnover list (Rs. 310 million). Similarly, LIOC (+5.8%) picked up due to the recent increases in fuel prices. Meanwhile, COMBN (+2.1%), CFVF (+2.7%), FCT (+2.6%), and HHL (+1.6%) closed with price gains. On the other hand, MGT (-1.4%), KHL (-1.3%), and ACL (-1.1%) settled with losses.

COMBN (+14 points), HAYL (+13 points), and LIOC (+9 points) ended as the major drivers of the ASPI. The breadth of the market was neutral with 87 price gainers and 91 decliners.

Market activity remained at moderate levels. Off-board transactions accounted for 11.2% of turnover.

First Capital said the market displayed a rather sideways movement during the first half of the day’s trading session. However, as the day progressed, a glimmer of buying interest emerged, primarily centred around COMB, after witnessing a sustained period of continuous selling over the past few weeks.

As the closing bell rang, the index settled in the green zone at 11,156, gaining 42 points. Furthermore, there was renewed interest for LIOC following recent developments, including the removal of fuel quotas and upward price adjustments.

Additionally, the hotel sector continued to attract investor interest, driven by the sustained influx of tourists, with arrivals exceeding 90,000 for the third consecutive month as of 20 August. Meanwhile, the market turnover saw a boost due to significant crossings. Notably, the Banking sector and Capital Goods sector jointly contributed 53% to the overall market turnover.