Stock market gains ending three days of negative run

The Colombo stock market yesterday managed to turn positive with improved turnover after three days of bearish sentiments.

The All Share Price Index gained by 36 points or 0.7% and the S&P SL20 Index rose by over 33 points of 1.57%. Turnover was Rs. 1.38 billion, as against Rs. 1 billion on Thursday.

First Capital said the market snapped the three-day slide in which it had stumbled 17 points on the back of better than expected quarterly earnings of counters released yesterday. Moreover, trade took place in East West Properties during the morning hours, led the way, bolstering the turnover, contributing 35%. 

“Despite the upcoming long weekend, active participation of retail investors and parcel trades took place in JKH and COMB, contributing to cross the turnover above Rs. 1.3 billion mark nearly after two weeks,” First Capital said.  “Index experienced a spike within the first 40 minutes of trading and thereafter stagnated just around the 5,120-point plateau prior to closing at 5,124 while capturing 36 points upside,” It added.

Notwithstanding, the active participation of local investors, foreigners held their breaths ahead of the decisive General Election while recording a marginal net inflow, with a moderate participation, First Capital said. 

NDB Securities said indices closed in green as a result of price gains in counters such as Commercial Bank, LOLC Holdings and Dialog Axiata.

High net worth and institutional investor participation was noted in East West Properties, John Keells Holdings and Commercial Bank. Mixed interest was observed in LOLC Holdings, Dialog Axiata and Sampath Bank, whilst retail interest was noted in Expolanka Holdings and CIC Holdings nonvoting. Furthermore, foreigners closed as net buyers mainly due to foreign purchasing in East West Properties. Real Estate sector was the top contributor to the market turnover (due to East West Properties) whilst the sector index edged down by 0.09%. The share price of East West Properties decreased by Rs. 1.00 (7.52%) closing at Rs. 12.30 whilst foreign holdings increased by 27,766,115 shares.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank) whilst the sector index increased by 1.22%. The share price of Commercial Bank recorded a gain of Rs. 2.60 (3.59%) to close at Rs. 75.00. 

John Keells Holdings, LOLC Holdings and Dialog Axiata were also included amongst the top turnover contributors. The share price of John Keells Holdings gained Rs. 0.80 (0.73%) to close at Rs. 110.80. The share price of LOLC Holdings moved up by Rs. 4.20 (3.24%) to close at Rs. 133.90. The share price of Dialog Axiata appreciated by Rs. 0.20 (1.83%) to close at Rs. 11.10.

NDB Securities said during the week, the ASPI and the S&P SL20 gained 1.16% and 0.82% respectively, whilst recording an average daily turnover of Rs. 1.02 billion. The ASPI and the S&P SL20 recorded monthly losses of 0.49% and 3.93% respectively, with an average daily turnover of Rs. 1.16 billion.