Stock market rebounds; market cap. reverts to Rs. 3 b mark

The Colombo stock market yesterday bounced back after a bearish week though investor activity was subdued.

The All Share Price Index gained by 113 points or 1.64% and the S&P SL20 Index improved by 28 points or 1%. Turnover was Rs. 757.6 million. Biggest contributors to the ASPI's gain yesterday was LOLC, CTC, Expolanka, JKH and Browns Investments. All sectors, except two, saw gains in the returns, whilst 126 counters out of 250 traded saw price appreciation. 

Market capitalisation moved back to the Rs. 3 trillion mark to close at Rs. 3.04 trillion, up by Rs. 49 billion from Friday's close of Rs. 2.99 trillion.

Investors were relieved with the positive start for the new week after the ASPI and the S&P SL20 lost 5.42% and 4.70% respectively last week, recording an average daily turnover of Rs. 1.11 billion. 

First Capital said the Bourse started the week breaking the losing streak experienced for the past five consecutive sessions, despite a turnover of less than Rs. 1 billion. 

“Index witnessed a strong uptrend since the beginning of the session, followed by a slight dip during mid-day. Thereafter, market bounced back and continued on its upward movement and closed at 6,967, gaining 112 points,” First Capital said. 

It said the Capital Goods sector led the turnover for the session, followed by the Materials sector making a joint contribution of 53%. 

NDB Equities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Ceylon Tobacco Company and Expolanka Holdings.

It said high net worth and institutional investor participation was noted in JKH, Expolanka Holdings and Dipped Products. Mixed interest was observed in Vallibel One, Hayleys and LOLC Holdings, whilst retail interest was noted in CIC Holdings non-voting, Royal Ceramics and Tokyo Cement Company. 

The Capital Goods sector was the top contributor to the market turnover (due to JKH), whilst the sector index gained 2.35%. The share price of JKH increased by Rs. 2.25 (1.52%), closing at Rs. 150.00, whilst foreign holdings decreased by 543,687 shares.

The Materials sector was the second highest contributor to the market turnover (due to Dipped Products), whilst the sector index increased by 2.97%. The share price of Dipped Products recorded a gain of Rs. 1.80 (4.26%) to close at Rs. 44.10.

Browns Investments, Expolanka Holdings and LOLC Holdings were also included amongst the top turnover contributors. The share price of Browns Investments gained Rs. 0.20 (4.35%) to close at Rs. 4.80. The share price of Expolanka Holdings moved up by Rs. 1.60 (3.84%) to close at Rs. 43.30.

The share price of LOLC Holdings appreciated by Rs. 11.25 (4.08%) to close at Rs. 287.00.

Separately, The Lanka Hospitals Corporation announced a final dividend of Rs. 0.75 per share.

Net foreign selling was Rs. 121 million, lower in comparison to Rs. 267 million on Friday, whilst the year-to-date net outflow rose to Rs. 15.7 billion.

According to Asia Securities, estimated net foreign buying topped in CIC at Rs. 2.3 million and net foreign selling topped in JKH at Rs. 81.6 million.