Stock market stages strong recovery

The Colombo stock market yesterday staged a strong recovery after a heavy beating in the early part of the week.

The All Share Price Index gained by 1.4% or over 178 points and the S&PSL20 shot up by 2.67% or over 112 points. Turnover was Rs. 6.5 billion involving 183 million shares.

On a weekly basis, the ASPI ended lower declining 100.54 points (-0.78%) while the S&P SL20 lost 46.79 points (-1.07%). However, activity levels remained steady throughout the week with average daily turnover coming in at Rs. 8 billion versus Rs. 8.7 billion in the previous week.

Asia Securities said the indices ended the shortened trading week on a positive note bouncing back from a two-day descent boosted by a rebound rally in index heavyweights EXPO (+9.8%), LOLC group companies LOLC (+5.7%), BIL (+6.2%), CLC (+8.4%) and BRWN (+4.2%). Softlogic group ended mixed with SCAP gaining 6.3% and AAIC extending price losses, closing -6.4% lower (previous session-22.7%) in an otherwise positive session. 

Turnover was led by EXPO topping at Rs. 1.56 billion and AAIC (Rs. 486 million) and BIL (Rs. 479 million). “The ASPI commenced the session moving downwards triggered by Wednesday’s  plunge (-2.6%) and touched an intra-day low of 12,320 (-264 points). The index picked up momentum thereupon and surged 443 points over the course of the trading session to end with a sharp gain of 179 points (+1.42%) as retail and HNI investors resorted to buying on the dip to reposition themselves in index-heavy stocks,” Asia said. 

“As the top contributor to the ASPI, EXPO contributed 61 points to the index, followed by LOLC (+36 points) and BIL (+22 points). The breadth of the market closed positive with 113 price gainers and 89 decliners,’ it added. 

Asia also said foreigners recorded a net outflow of Rs. 88.7 million while their participation increased to 1.9% of turnover (previous day 1.5%). Net foreign buying topped in HAYL at Rs. 11 million and selling topped in SUN at Rs. 38.4 million. 

First Capital said the bourse bounced back to the green zone after previous day losses recording a 3-week high intraday gain driven by active retail participation.

“Shortly after the market opened index lost 269 points hitting an intraday low of 12,315 within the initial half hour but gradually managed to recover and show strength. Subsequently the index moved on an upward trajectory as investors were bargain hunting on retail favourite counters such as EXPO and LOLC which were on a drastic downhill over the previous sessions. However, the positive momentum continued for the rest of the session and closed for the day at 12,763,” First Capital added.

It said turnover was led by a joint contribution of 44% from the Transportation sector and Food, Beverage and Tobacco sector. 

NDB Securities said high net worth and institutional investor participation was noted in Lanka Orix Finance, Sunshine Holdings and Hayleys. Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and LOLC Holdings whilst retail interest was noted in Browns Investments, Anilana Hotels & Properties and Renuka Agri Foods. 

It said the Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 9.76%. The share price of Expolanka Holdings increased by Rs. 30.75 (9.78%) to close at Rs. 345.25. 

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Sunshine Holdings) whilst the sector index increased by 0.82%. The share price of Browns Investments moved up by 90 cents (6.16%) to close at Rs. 15.50. 

The share price of Sunshine Holdings declined by Rs. 3.40 (5.91%) to close at Rs. 54.10. Softlogic Life Insurance and LOLC Holdings were also included amongst the top turnover contributors. The share price of Softlogic Life Insurance lost Rs. 9.00 (6.36%) to close at Rs. 132.50. The share price of LOLC Holdings recorded a gain of Rs. 63.25 (5.65%) to close at Rs. 1,181.75.