Stock market rebounds to over 6-week high

The Colombo stock market bounced back yesterday with both indices up thanks to improved sentiments among retailers.

The All Share Price Index gained by 1% or 79 points and the S&P SL20 improved by 0.8% or 25 points. Turnover too improved to Rs. 2.8 billion involving 82 million shares. 

First Capital said the bourse reclaimed its position back on the green pitch while recording a six-and-half-week high. 

“Index witnessed a brief dip in the market during the first 20 minutes of trading prior to a steady acceleration throughout the trading session before closing at 7,516, gaining 80 points,” First Capital added. 

It said turnover was led by the Capital goods sector, closely followed by the Materials Sector, accounting for a joint contribution of 47%. 

Asia Securities said the indices trended upwards throughout the session and returned to green territory, boosted by price gains in counters such as LOLC, VFIN, CICX and TKYOX. 

“Turnover topped in COMB, which was dominated by block trades. Block trades in COMB accounted for 62% of stock turnover while overall activity remained at healthy levels,” Asia added.

It said Capital Goods, Materials, Diversified Financials and Banks sectors led activity, collectively accounting for 83.4% of turnover. 

Foreigners recorded a net outflow of Rs. 226.1 million while their participation increased to 5.4% of turnover (previous day 2.3%). Estimated net foreign buying topped in Hemas at Rs. 5.8 million and net foreign selling topped in COMB at Rs. 120.4 million. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Richard Pieris and Company and Vallibel One.

It said high net worth and institutional investor participation was noted in Commercial Bank. Mixed interest was observed in Royal Ceramics, Lanka Walltiles and Vallibel Finance, whilst retail interest was noted in CIC Holdings non-voting, Industrial Asphalts and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover, whilst the sector index gained 1.59%.

The Materials sector was the second highest contributor to the market turnover (due to CIC Holdings nonvoting and Tokyo Cement Company non-voting), whilst the sector index increased by 2.19%. The share price of CIC Holdings non-voting recorded a gain of Rs. 3.00 (7.46%) to close at Rs. 43.20. The share price of Tokyo Cement Company non-voting appreciated by Rs. 3.90 (6.20%) to close at Rs. 66.80.

Commercial Bank, LOLC Holdings and Vallibel Finance were also included amongst the top turnover contributors. The share price of Commercial Bank increased by Rs. 1.30 (1.46%) closing at Rs. 90.10, whilst foreign holdings decreased by 1,336,220 shares. The share price of LOLC Holdings gained Rs. 11.00 (3.14%) to close at Rs. 361.75. The share price of Vallibel Finance moved up by Rs. 4.75 (2.92%) to close at Rs. 167.25.

Separately, Windforce Ltd., announced an interim dividend of Rs. 0.75 per share, whilst Alliance Finance Company announced a first and final dividend of Rs. 5.50 per share. Cargills announced a final dividend of Rs. 4.10 per share.