Stock market rebounds; gains turnover

The Colombo Stock Market bounced back strongly yesterday with higher turnover as investors showed signs of renewed optimism, despite a worsening COVID-19 situation in the country.

The All Share Price Index (ASPI) gained by 130 points or 2.27% and the S&P SL20 Index gained by over 31 points or 1.4%. Turnover was recorded at Rs. 2.7 billion, the highest in recent days.

Biggest contributors to the ASPI’s gain were Expolanka (15%), Commercial Leasing (12%), John Keells Holdings (8%), Sri Lanka Telecom (5%) and Hemas (4%).

Analysts said investors continued to act maturely, whilst impressive corporate earnings as well as a more positive outlook for the economy in 2021 from the Central Bank which forecast a 1.7% contraction this year, helped improve investor sentiment.

First Capital said Bourse gained back momentum experiencing a Rs. 2 billion plus turnover after seven trading sessions, while recording a two-week high amidst heavy retail buoyancy. “Index witnessed a continuous upward movement since the beginning of the session and closed at 5,843 with an advance of 130 points,” it said.

First Capital also said the transportation sector counters led the turnover for the session, closely followed by the materials sector making a joint contribution of 62%.

Asia Securities said indices saw strong gains following positive sentiments from investors as a result of an expectation of stronger corporate earnings. “Retailers were seen to be more active on the small cap stocks which saw stronger gains during the day while blue chip and mid cap stocks,” it added.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, John Keells Holdings (JKH), and Commercial Leasing and Finance. 

It said high net worth and institutional investor participation was noted in JKH. Mixed interest was observed in Expolanka Holdings, Piramal Glass and Dipped Products, whilst retail interest was noted in Tokyo Cement Company non-voting and voting and R.I.L. Property.

Transportation sector was the top contributor to the market turnover due to Expolanka Holdings, as the sector index gained 17.92%. The share price of Expolanka Holdings increased by Rs. 3.40 (17.99%) to close at Rs. 22.30.

Materials sector was the second highest contributor to the market turnover due to Piramal Glass, Dipped Products and Tokyo Cement Company non-voting, as the sector index increased by 3.46%. The share price of Piramal Glass gained Rs. 1.50 (21.74%) to close at Rs. 8.40.

Share price of Dipped Products recorded a gain of Rs. 12.30 (3.96%) to close at Rs. 323.00, whilst the share price of Tokyo Cement Company non-voting appreciated by Rs. 0.90 (1.72%) to close at Rs. 53.10.

JKH was also included amongst the top turnover contributors. The share price of JKH moved up by Rs. 2.50 (1.91%) to close at Rs. 133.20.

The market saw net foreign selling of Rs. 377.3 million, up from Rs. 179 million on Monday. The year-to-date net foreign outflow moved up to Rs. 45.77 billion.