Stock market rebounds, sustains Rs. 1 b plus turnover

The Colombo stock market bounced back to positive territory and sustained the Rs. 1 billion plus turnover in an apparent sign of improved investor sentiment. 

Both indices clocked 0.6-0.8% gains and turnover was Rs. 1.04 billion involving 56 million shares. 

Foreign investors too remain bullish resulting in a net inflow boosting the figure so far in July to Rs. 777 million.



Asia Securities said the indices returned to positive territory after four sessions of decline on) mainly led by price gains in EXPO (+3.6%), LIOC (+4.8%), RICH (+6.7%), CICX (+4.1%) and BIL (+1.4%) while plantation sector stocks witnessed a strong session driven by KOTA (+14.5%), BALA (+22.7%), MASK (+15.9%), AGAL (+9.3%) and TPL (+6.8%). Similarly, activity in TJL (+0.9%) picked up during the session on the back of steady retail and HNI buying. 

Turnover was supported by LIOC (Rs. 141 million), EXPO (Rs. 113 million), TJL (Rs. 63 million), and KOTA (Rs. 56 million). The ASPI opened trading with a gap-up of 45 points (+0.6%) at 7,672 and trended towards the 7,700 level in the first hour of trading. After touching an intra-day high of 7,701 (+1.0%), the index moved within the range of 7,670-7,700 for the rest of the session. The breadth of the market turned positive with 101 price gainers and 69 decliners.

Asia also said foreigners recorded a net inflow of Rs. 22.9 million while their participation was flat at 2.6% of turnover (previous day 24.7%). Net foreign buying topped in RICH at Rs. 23.9 million and selling topped in TJL at Rs. 3.6 million. 

First Capital said the bourse bounced back to the green territory as investors confidently rallied predominantly in the plantation sector while discussions with SLFP and the President with regards to forming an all-party Government brought further positivity into the market. 

The Index opened on an upswing and continued to scale high through the session as selling pressure eased off while higher than expected results fuelled investor confidence and closed for the day at 7,680 gaining 53 points. Turnover was mainly driven by the joint contribution of 50% from the Food, Beverage and Tobacco sector and the Energy sector. 

NDB Securities said high net worth and institutional investor participation was noted in Teejay Lanka and Printcare. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Balangoda Plantations whilst retail interest was noted in Kotagala Plantations, Browns Investments and Lankem Developments. 

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Kotagala Plantations and Browns Investments) whilst the sector index gained 1%. The share price of Kotagala Plantations recorded a gain of 80 cents (14.55%) to close at Rs. 6.30. The share price of Browns Investments appreciated by 10 cents to close at Rs. 7.20.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 4.03%. The share price of Lanka IOC increased by Rs. 3.90 (4.81%) to close at Rs. 84.90.

Expolanka Holdings and Teejay Lanka were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 6 (3.57%) to close at Rs. 174.25. The share price of Teejay Lanka moved up by 40 cents to close at Rs. 45.