Colombo stock market rebounds though ending week with loss

The Colombo stock market yesterday bounced back though ending the week with loss. 

The active S&P SL20 gained by 2% and the benchmark ASPI by 1.6%. Turnover improved to Rs. 1.4 billion involving 35.6 million shares.

For the week the ASPI declined by 2.5% and S&PSL20 by 3.6%. Turnover averaged at Rs. 1 billion. 

Asia Securities said the market boosted by price gains in LIOC (+8.3%), EXPO (+2.2%), LOLC (+1.8%), LOFC (+4.6%), MELS (+6.2%), and HAYL (+3.8%). CINS ended as the biggest contributor to the ASPI with 23 points on the back of a 7.3% gain, however turnover generated by the stock was minuscule at Rs. 0.2 million. 

Market turnover for the day surpassed Rs. 1 billion after three sessions of moderate activity, coming in at Rs. 1,430 million (previous session Rs. 785 million). LIOC topped the turnover list (Rs. 519 million), followed by EXPO (Rs. 435 million), JKH (Rs. 147 million), and BIL (Rs. 48 million). The breadth of the market closed strong with 112 price gainers and 46 decliners.

Asia also said foreigners recorded a net outflow of Rs. 6.9 million. Net foreign buying topped in EXPO at Rs. 1.8 million and selling topped in HAYC at Rs. 10.5 million.

First Capital said following a ASPI decline of 766 points (9.4%) last month, relatively active retail participation was observed during yesterday’s session, where investors hunted down heavyweights after margin pressure eased as the new month commenced. 

Although inflation for the month of May was recorded at 54.6%YoY, solid upward momentum was enticed over the day, closing at 7,457 recording a gain of 115 points. Despite reaching an ex-dividend date, retailers were actively collecting EXPO while LIOC continued to contribute to the ASPI hike. 

Moreover, turnover hit a fresh record of Rs. 1.4 billion after 3-weeks (up by 50% compared to the recent weekly average) driven by active retail participation led by Energy (LIOC ) and Transportation (EXPO) sectors accounting for a joint contribution of 67%. However, foreign investors turned net sellers, breaking the 4-day streak of net buyers while recording low participation.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Ceylinco Insurance, Melstacorp and Sampath Bank.

It said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and LOLC Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and Industrial Asphalts. 

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index gained 6.72%. The share price of Lanka IOC increased by Rs. 6 (8.30%) to close at Rs. 78.30.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 2.17%. The share price of Expolanka Holdings gained Rs. 3.75 (2.17%) to close at Rs. 176.50.

John Keells Holdings, Browns Investments and LOLC Finance were also included amongst the top turnover contributors. The share price of John Keells Holdings moved up by 25 cents to close at Rs. 122.25. The share price of Browns Investments recorded a gain of 20 cents to close at Rs. 7.60. The share price of LOLC Finance appreciated by 30 cents to close at Rs. 6.80.