CSE rebounds sharply on Expolanka; closes positive first time in 3 weeks

The Colombo stock market yesterday marked its first week of gains after losses in the previous three thanks to a rebound in investor sentiment.

The benchmark ASPI gained 330.17 points (4.22%) this week and the S&P SL20 by 156.65 points (6.58%). Average daily turnover was Rs. 1.44 billion.

Finishing an erratic week on a positive note, the active S&P SL20 shot up by 3.2% and the ASPI gained by 1.5% on Friday. Turnover improved to Rs. 1.6 billion involving 43.6 million shares.

Investor interest renewed on Expolanka Holdings which on Thursday said it was in search of new acquisitions whilst the announcement also triggered speculation that its parent SG Holdings will revert to collecting more quantities of Sri Lanka’s most valuable listed entity.

Asia Securities said the indices moved back to the upside on Friday and closed out the week on a buoyant note, propelled by sharp gains in EXPO (+16.2%) as domestic investors took positions in the stock cashing in on the relatively lower prices.

The ASPI gained 120 points (+1.5%) during the session while the S&P SL20 ended 80 points (+3.2%) higher. Turnover saw a moderate pickup led by EXPO (Rs. 649 million) and LIOC (Rs. 205 million).

Earlier, the ASPI saw a gap-up of 30 points at 8,058 and dipped to a low of 8,021 in the first hour of trading. Subsequently, the index regained momentum to cross the 8,100 mark and trended towards 8,200 in the second half of the session. As the biggest index mover, EXPO contributed 41 points to the ASPI followed by LOLC (+13 points), and SAMP (+12 points). The breadth of the market was positive with price gainers outnumbering decliners by a margin of 113 to 68.

Asia also said foreigners recorded a net outflow of Rs. 38 million. Net foreign buying topped in BOPL at Rs. 7.2 million and selling topped in LDEV at Rs. 29.6 million.

First Capital said the Bourse rebounded to green after a day of loss as investor confidence was reinstated following the CBSL governor providing direction on future interest rates which triggered interest on treasury counters.

The Index opened on an upbeat note and continued to move on a steady upward trajectory as investors rallied on the retail favourites EXPO and LOLC while LIOC continued to witness institutional interest and closed for the day at 8,148 gaining 120 points.

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

It said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and ACL Cables whilst retail interest was noted in Browns Investments, SMB Leasing and Lankem Developments.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 16.17%. The share price of Expolanka Holdings increased by Rs. 22.75 (16.19%) to close at Rs.163.25.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 3.21%. The share price of Lanka IOC gained Rs. 6.75 (3.85%) to close at Rs. 182.25.

Lankem Developments, ACL Cables and Sampath Bank were also included among the top turnover contributors. The share price of Lankem Developments moved up by 60 cents (2.07%) to close at Rs. 29.60. The share price of ACL Cables recorded a gain of Rs. 4.30 (6.13%) to close at Rs. 74.40. The share price of Sampath Bank appreciated by Rs. 1.30 (4.13%) to close at Rs. 32.80.