Stock market rebounds; turnover up 38% to Rs. 3.9 b

The Colombo stock market bounced back yesterday as bargain hunters stepped up activity after the spread of local COVID-19 positive cases wiped out over Rs. 200 billion in value. 

Acuity Stockbrokers said the bourse ended on a positive note as the ASPI increased by 0.34% or 18.61 points to close at 5,553.22 points, while the S&P SL20 Index also increased by 0.03% or 0.67 points to close at 2,272.89.

Turnover increased by 38.4% relative to Tuesday to Rs. 3.9 billion while Expolanka accounted for 6.2% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 1.1 billion compared to a net inflow of Rs. 23.1 million on Tuesday.

First Capital said the market reverted to the positive sentiment despite the prevailing COVID-19 situation of the country due to the buoyancy of institutional investors. 

“The index experienced a strong uptrend since the beginning of the session as it reached its intraday high of 5,612 during mid-day. Later the market recorded a downward movement and closed at 5,553 gaining 19 points,” First Capital added. 

It said Capital Goods counters dominated the nine-month high turnover led by JKH, contributing 49%. Moreover, parcel trades for the session boosted the turnover, amounting to 53% of total. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Bukit Darah, Carson Cumberbatch and Browns Investments.

Crossings were witnessed in John Keells Holdings, Seylan Bank, Sampath Bank and DFCC Bank, accounting for 52.8% of the turnover. 

Mixed interest was observed in Tokyo Cement Company non-voting and voting, whilst retail interest was noted in Expolanka Holdings, Hayleys Fabric and Commercial Bank. Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings), whilst the sector index gained 0.13%. The share price of John Keells Holdings edged up by Rs. 0.10 (0.08%) closing at Rs. 130.00, whilst foreign holdings decreased by 8,185,778 shares.

The Banking sector was the second highest contributor to the market turnover (due to Seylan Bank and Sampath Bank), whilst the sector index increased by 0.42%. The share price of Seylan Bank gained Rs. 2.40 (5.77%) to close at Rs. 44.00. The share price of Sampath Bank declined by Rs. 1.20 (0.99%) to close at Rs. 119.60.

Expolanka Holdings and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 0.10 (0.83%) to close at Rs. 12.10. The share price of Hayleys Fabric recorded a loss of Rs. 0.20 (0.87%) to close at Rs. 22.70. 

Royal Ceramics and Swisstek announced their interim dividends of Rs. 3 and Rs. 2.65 per share respectively, whilst Lanka Ventures and LVL Energy Fund Ltd. announced their final dividends of Rs. 1.50 and Rs. 0.17 per share respectively.