Colombo stock market posts strong rebound

The Colombo stock market staged a strong rebound yesterday thanks to a positive change in investor sentiment on blue chips including Hayleys whilst activity levels improved including net foreign inflow.

The benchmark ASPI and the active S&P SL20 gained by over 1% each. Turnover improved from Rs. 1.4 billion on Wednesday to Rs. 1.85 billion yesterday involving 98 million shares. 

Asia Securities said the indices closed sharply higher driven by a significant pickup in HAYL (+9.8%). The ASPI closed at 8,485 (+99 points) while the S&P SL20 index ended at 2,636 (+28 points). Turnover was led by HAYL (Rs. 262 million), JKH (Rs. 183 million) and SCAP (Rs. 180 million). 

HAYL (+37 points), VONE (+14 points), and SAMP (+10 points) were the biggest contributors to the ASPI during the session. The breadth of the market was positive with 98 price gainers and 72 decliners.

Asia also said foreigners recorded a net inflow of Rs. 69.1 million. Net foreign buying topped in JKH at Rs. 44 million and selling most in TILE at Rs. 7 million.

First Capital said the ASPI extended the positive sentiment for the third consecutive day after the President’s comments at the Parliament on the progression of the debt restructuring talks with India and China, and optimistic view that the IMF Board-Level Agreement may be signed in 1Q2023. 

It said active investor participation was witnessed on Banking sector counters and index heavyweights. After yields recording a steep decline during Wednesday’s auction, Treasury counters commenced the day on a bullish trend, yet profit taking was witnessed on CALT and FCT towards the end of the session after continuous gains during the previous sessions.

The Index continued to rise high, reaching an intraday high of 8,566 before closing the day at 8,485, gaining 99 points. HAYL contributed largely to the ASPI hike as active collection was reactivated after being heavily beaten down during the past few weeks over adverse tax impacts. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Hayleys, First Capital Holdings and Capital Alliance whilst retail interest was noted in Industrial Asphalts, LOLC Finance and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index gained 1.14%. The share price of Hayleys increased by Rs. 6.30 (9.80%) to close at Rs. 70.60. The share price of John Keells Holdings lost 50 cents to close at Rs. 136.25.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital, First Capital Holdings and Capital Alliance) whilst the sector index increased by 0.49%. 

The share price of Softlogic Capital moved up by 10 cents to close at Rs. 15.10. The share price of First Capital Holdings recorded a gain of Rs. 1.30 (3.77%) to close at Rs. 35.80. The share price of Capital Alliance declined by 40 cents to close at Rs. 31.10.