Stock market rebounds to recoup part of Friday’s loss

• Index-heavy CLC ended with a gain of 10.4% and contributed 94 points to ASPI; excluding CLC’s contribution, the index was up 65 points
• YTD net foreign selling now over Rs. 48 b

The Colombo stock market yesterday bounced back to recoup part of losses suffered on Friday, as investors appeared bullish with healthy turnover.

The All Share Price Index (ASPI) gained by 1.5%, or 158 points, as opposed to the 3.3% plunge on Friday. The S&PSL20 gained by 0.6%, or over 23 points. Turnover amounted to Rs. 6.15 billion involving 224 million shares.

With over Rs. 1 billion net foreign selling late last week, the year-to-date net outflow has crossed the Rs. 48 billion mark.

First Capital said the bourse rallied with a significant gain, fuelling bullish optimism after a drastic fall on 19 September, while turnover was boosted by a high number of retail investors.

“The index surged high and gained more than 100 points as soon as the market opened and managed to secure a positive run till the end. During the latter part of the session, the index hit an intraday high of 10,880 before closing at 10,817, gaining 159 points,” First Capital added.

It said turnover was led by a joint contribution of 64% from the Diversified Financial and Capital Goods sectors.

Asia Securities said the indices closed higher with the ASPI recouping some of the losses incurred on Friday (19), largely underpinned by sharp price increases in momentum stocks, while the more liquid S&P SL20 index remained in positive territory for the fourth straight session on price gains in EXPO and LOLC. 

“Index-heavy CLC ended with a gain of 10.4% and contributed around 94 points to the ASPI during the session. Excluding CLC’s contribution, the index was up 65 points at market close,” Asia added.

It said turnover remained at healthy levels led by retail and HNI activity in LOFC, EXPO, and LOLC.

“The ASPI commenced the session on a positive note, surpassing the 10,700 level and surged past the 10,800 level within the first hour of trading. Subsequently, the index stabilised and moved within the range of 10,820-10,840 in mid-afternoon trade. The ASPI witnessed another pickup in closing hours and touched an intra-day high of 10,877 (218 points) before settling at 10,817 (159 points),” according to Asia.

The breadth of the market was almost neutral with 94 price gainers and 97 decliners.

Asia also said foreigners recorded a net outflow of Rs. 53.2 million while their participation declined to 1.4% of turnover (previous day 4.0%). Net foreign buying topped in LOFC at Rs. 16 million and net selling topped in BOGA at Rs. 80 million.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Commercial Leasing & Finance, LOLC Holdings and Lanka Orix Finance.

It said high net worth and institutional investor participation was noted in Softlogic Holdings and CIC Holdings Voting. Mixed interest was observed in Royal Ceramics, Sunshine Holdings and Lanka Orix Finance, whilst retail interest was noted in Browns Investments, Sierra Cables and Shaw Wallace Investments.

The Diversified Financials sector was the top contributor to the market turnover (due to Lanka Orix Finance and LOLC Holdings), whilst the sector index gained 5.06%. The share price of Lanka Orix Finance increased by Rs. 1.60 (6.20%) to close at Rs. 27.40. The share price of LOLC Holdings moved up by Rs. 23.50 (3.16%) to close at Rs. 768.

The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables), whilst the sector index increased by 0.27%. The share price of ACL Cables appreciated by Rs. 2.60 (3.44%) to close at Rs. 78.10.

Expolanka Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 3.25 (1.41%) to close at Rs. 233. The share price of Browns Investments recorded a gain of 20 cents (1.83%) to close at Rs. 11.10.