Saturday Sep 21, 2024
Saturday Sep 21, 2024
Friday, 10 September 2021 02:32 - - {{hitsCtrl.values.hits}}
Retail investors ably supported by high net worth individuals yesterday revived the Colombo stock market, with indices bouncing back though turnover was relatively low.
After the market crashed with a 3% dip on Wednesday, retailers and high net worth investors stepped up buying for the rebound. The All Share Price Index gained by 222 points or 2.5%, and the S&P SL20 improved by 2% or 63 points. Turnover was Rs. 5.8 billion involving 265 million shares.
The market also saw a welcome net foreign inflow of Rs. 105 million on account of Nestle.
The rebound also saw the market’s value gain by Rs. 100 billion, thereby propelling CSE’ market capitalisation back to the Rs. 4 trillion mark.
Biggest contributors to yesterday’s ASPI gain were Browns Investments (26 points), Commercial Leasing (23 points), LOLC (20 points), Expolanka (17 points) and Nestle (12 points). The first four were among top contributors to Wednesday’s sharp dip.
Expolanka dominated in turnover, accounting for 31% or Rs. 1.8 billion, followed by Browns Investments (1.25 billion), and LOLC (Rs. 400 million).
Asia Securities said the market bounced back strongly from Wednesday’s decline as HNI and retail investors took the opportunity to position themselves in momentum-driven stocks at relatively low prices.
“The panic sell-off seen over the last few sessions has made many fundamentally strong stocks more lucrative in the market due to attractive valuations justified by unchanged fundamentals coupled with an expected strong pickup in 3Q CY21 earnings,” Asia said.
It said the indices returned to positive territory, snapping their four-session losing streak and closed with sharp gains due to price increases in selected heavyweight counters. After reaching an intra-day low of 8,727, the ASPI rebounded strongly to surpass the 8,900 points on the support of price gains in BIL, LOLC, and EXPO, and held the momentum to touch the 9,000 mark before stabilising during closing hours.
In line with the indices, the market breadth ended positive as price gainers outnumbering decliners 157 to 33 according to Asia, which added that the turnover was recorded at a three-week low but was at healthy levels supported by retail and HNI buying in EXPO and BIL.
First Capital said after persistent bearish sentiment over the week, the market bounced back to the green zone while recording a turnover at a two-week low.
“Index moved in a descending pattern within the earlier minutes of trading, recording an intraday low of 8,724. Subsequently, the market demonstrated a sizeable recovery as investors were on a bargain hunt and continued to be on the rise although a short-lived dip was witnessed by mid-session. Market recorded an intraday high of 9,015 during the latter part of the session and closed for the day at 8,986, firmly remaining in the green territory, gaining 222 points,” First Capital said.
It said turnover was led by the Food, Beverage and Tobacco and Transportation sectors through a collective contribution of 60%.
NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, Expolanka Holdings and Hatton National Bank. Mixed interest was observed in LOLC Holdings, Nestle Lanka and Hayleys, whilst retail interest was noted in Browns Investments, SMB Leasing and Nation Lanka Finance.
The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Nestle Lanka), whilst the sector index gained 2.70%. The share price of Browns Investments gained Rs. 0.80 (8.70%) to close at Rs. 10. The share price of Nestle Lanka recorded a gain of Rs. 101.75 (8.40%) to close at Rs. 1,313.50.
The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index increased by 2.35%. The share price of Expolanka Holdings increased by Rs. 4 (2.34%) to close at Rs. 175.
LOLC Holdings and Sampath Bank were also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 19.25 (3.56%) to close at Rs. 560.25. The share price of Sampath Bank appreciated by one rupee (1.95%) to close at Rs. 52.20.
