Stock market stages strong recovery after early dip

Tuesday, 7 December 2021 02:17 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday closed on the up, thanks to a strong recovery following a sharp dip in early morning trade.

The All Share Price Index finished with a 46 points gain or 0.4%, and the S&P SL20 rose by 1.6% or over 62 points. Turnover was healthy at Rs. 6.7 billion involving 253 million shares.

Asia Securities said the ASPI crossed the 11,000-mark once again and returned to positive territory after witnessing three sessions of losses, while the more liquid S&P SL20 index also resumed its record-breaking run and posted a gain of more than 1%, largely helped by price increases recorded in EXPO.

The stock opened trading at a price of Rs. 280.25 and touched an intra-day high of Rs. 297.75 (+6.2%), before settling at Rs. 295 (+5.3) at market close. CLC, the biggest laggard in terms of stock contribution to the ASPI (-110 points), ended with a sharp loss of a 19.2%. However, it generated the highest turnover during the session at Rs. 2,609 million, followed by EXPO (Rs. 984 million) and BIL (Rs. 599 million). Asia said retail and HNI investors drove activity throughout the session.

“Initially, the ASPI commenced the session on a negative note, reaching an intra-day low of 10,928 (-60 points). The index witnessed a subsequent pick up to 11,057 and briefly stabilised within the range of 10,970-11,030 in mid-afternoon trade. The ASPI gained more momentum in the last hour trading and touched an intra-day high of 11,104; however, it consolidated at 11,034 at market close. On the other hand, the S&P SL20 trended upwards throughout the session and scaled another all-time closing high at 3,947 (+62 points or +1.61%),” Asia said.

It said apart from EXPO, price gains in BRWN (+10.1%), VONE (+4.7%), RCL (+4.0%) and LOLC (+1.9%) boosted the index during the session. The breadth of the market was positive with 108 stocks gaining and 84 declining.

Foreigners recorded a net inflow of Rs. 23 million while their participation declined to 0.7% of turnover (previous day 1.2%). Net foreign buying topped in CLC.N at Rs. 23 million while net selling topped in MELS at Rs. 13.4 million.

First Capital said the bourse bounced back to the green zone after facing a massive drop back-to-back as optimistic investors resorted to regaining some of their losses. Though the index plummeted steeply during the early hours of the session reaching an intraday low of 10,920 eventually, it bounced back to an upward trajectory as investors set on a buying spree during the rest of the day. Market displayed slight volatility throughout the session and closed the day at 11,034, gaining 46 points.

It said turnover was led by a joint contribution of 59% from the Diversified Financials sector and the Transportation sector.

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Expolanka Holdings, Brown & Company and Vallibel One, whilst retail interest was noted in Commercial Leasing & Finance, SMB Leasing and Browns Investments.

Separately, Windforce Ltd. and Vallibel One announced their interim dividends of 55 cents and Rs. 1.50 per share respectively.