Stock market rebounds with indices up by over 1%; turnover remains low

The Colombo stock market recovered yesterday after its heavy fall on Monday with both indices up by over 1% though turnover remained low in terms of recent activity levels. 

The All Share Price Index gained by 1.8% or over 155 points and the S&P SL20 gained by 1.6% or 52 points. On Monday, both indices plunged by near 4%. 

Turnover was Rs. 3.58 billion involving 148.7 million shares. 

Asia Securities said the market returned to positive territory today after two sessions of losses as the indices moved upwards and sustained their recovery momentum throughout the session mainly on the back of activity in EXPO, BIL, and LOLC.  “The ASPI commenced trading on a positive note surpassing the 8,600 level with a sharp 108-point gap up and surged above the 8,700 mark within the first 30 minutes of trading as retail and HNI investors sought oversold stocks at lower prices,” Asia said. It said the index witnessed some stabilisation in the second half of the session after scaling to an intra-day high of 8,736 (+199 points), however remained in positive terrain, supported by price gains in the above-mentioned stocks. 

“The overall market breadth turned strong recording 154 price gainers against 34 decliners,” Asia added. Compared to recent levels, moderate turnover was recorded led by activity in EXPO, which accounted for 44% of turnover.

First Capital also said the bourse bounced back to the green territory after facing a massive drop back-to-back as optimistic investors resorted to regain part of the losses, although turnover fell to a one-month low. 

“Index remained bullish in the first half of the session, reaching an intraday high of 8,737 as retailers pounced on battered stocks after a steep fall yesterday. Eventually, the market took a sideways movement and managed to hold the grip before closing at 8,693,” First Capital said. 

It said turnover was led by the Transportation sector, followed by the Food, Beverage and Tobacco sector collectively accounting for a total contribution of 65%.  Foreign investors remained net sellers while recording low participation.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, LOLC Holdings and Browns Investments.

It said high net worth and institutional investor participation was noted in Hatton National Bank voting, Hatton National Bank non-voting, Hemas Holdings and Nestle. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Teejay Lanka, whilst retail interest was noted in Browns Investments, SMB Leasing and Industrial Asphalts. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 5.32%. The share price of Expolanka Holdings increased by Rs. 7.75 (5.34%), closing at Rs. 153, whilst foreign holdings decreased by 498,376 shares.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Nestle Lanka), whilst the sector index increased by 1.03%. The share price of Browns Investments gained by 40 cents (4.65%) to close at Rs. 9. The share price of Nestle Lanka recorded a gain of Rs. 10.50 (0.84%) closing at Rs. 1,261.25, whilst foreign holdings decreased by 203,180 shares.

LOLC Holdings and Hatton National Bank voting were also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 14 (2.81%) to close at Rs. 512. The share price of Hatton National Bank non-voting appreciated by Rs. 3 (2.36%) to close at Rs. 130.