Strong rebound at stock market

The Colombo stock market yesterday produced a strong rebound with indices gaining by over 4% and Rs. 277 billion of lost value from Thursday restored.

The All-Share Price Index gained by 451 points or 4.23% and the S&PSL20 improved by 4.40% or over 157 points. Market capitalisation gained by Rs. 277 billion to Rs. 4,967 billion after having lost Rs. 843 billion between last week and Thursday. Turnover yesterday improved to Rs. 4.2 billion involving 165.4 million shares.

For the week, however, the ASPI lost 1,026.14 points (8.46%) while the S&P SL20 shed 398.32 points (9.62%). Year to date ASPI is down by 9.15% and S&PSL20 lower by 11.6%. Turnover averaged Rs. 3.9 billion, higher in comparison to Rs. 3.6 billion in the previous week.

Asia Securities said the market ended the week on a strong rebound with the ASPI reclaiming the 11,000 level and marking a record single-day gain of 451 points (+4.2%) boosted by LOFC (+17.1%), CLC (+19.5%), LOLC (+8.5%), EXPO (+8.9%), BIL (+8.7%), and RCL (+5.6%). Turnover was mainly led by EXPO which generated Rs. 932 million.

Asia said earlier, the ASPI opened trading on a mixed note with a gap-up of 205 points to 10,862 followed by a 248-point decline to 10,614. However, the index picked up momentum and moved upwards thereupon as retail and HNI investors sought frontline stocks at relatively lower prices following the recent sell-off. The ASPI gained around 494 points from its intra-day low of 10,614 to close at 11,108.

As the highest contributor to the ASPI, EXPO contributed 42 points to the index, followed by LOLC (40 points) and BIL (22 points). The breadth of the market turned strong with price gainers outnumbering decliners by a wide margin of 206 to 30.

Foreigners recorded who were net buyers this week until Thursday, turned net sellers worth Rs. 161.3 million yesterday while their participation increased to 4.9% of turnover (previous day 2.3%). Net foreign buying topped in EXPO at Rs. 55.5 million and selling topped in COMB.N at Rs. 224.2 million.

NDB Securities said High net worth and institutional investor participation was noted in Commercial Bank, Access Engineering and Sampath Bank. Mixed interest was observed in Expolanka Holdings, Commercial Leasing & Finance and LOLC Holdings whilst retail interest was noted in Browns Investments, Lanka Orix Finance and SMB Leasing.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index edged up by 8.93%. The share price of Expolanka Holdings increased by Rs 21.50 (8.95%) to close at Rs 261.75.

Diversified Financials sector was the second highest contributor to the market turnover (due to Lanka Orix Finance and Commercial Leasing & Finance) whilst the sector index edged up by 8.67%. The share price of Lanka Orix Finance recorded a gain of Rs. 3.10 (17.13%) to close at Rs. 21.20. The share price of Commercial Leasing & Finance appreciated by Rs. 7.30 (19.47%) to close at Rs. 44.80.

Browns Investments and Commercial Bank were also included amongst the top turnover contributors. The share price of Browns Investments gained 90 cents (8.74%) to close at Rs. 11.20. The share price of Commercial Bank moved up by Rs. 1.20 (1.52%) to close at Rs. 80.10.

Separately E. B. Creasy & Co and Chevron Lubricants announced their interim dividends of 50 cents, and Rs. 2 per share respectively whilst Commercial Development Company announced a final dividend of Rs. 4 per share.