CSE recoups value lost on Monday; ASPI rebounds to highest gain in recent weeks

 The Colombo stock market yesterday ensured it recouped value lost on Monday thanks to improved investor sentiment and return of buying trends amidst improved turnover. 

The All Share Price Index gained by 238.6 points or 2.74% and the S&PSL20 by 2.33% or 76 points. This reflects a sharp rebound on the back of 1.8% and 1.6% gain on Tuesday.

On Monday, market capitalisation had fallen to Rs. 3.80 trillion (after the indices plunged by near 4%) from Rs. 3.95 billion but by yesterday it had recovered to Rs. 3.97 trillion – though still marginally below the Rs. 4 trillion threshold last enjoyed on 9 September.  

Turnover yesterday amounted to Rs. 5.5 billion, up from Rs. 3.5 billion on Tuesday.

Asia Securities said following Tuesday’s sharp rebound, the market witnessed upbeat momentum throughout the session with the ASPI recording its biggest gain in three weeks, led by price gains in selected heavyweight counters, which saw renewed buying interest from investors after the recent dip in prices. 

“The ASPI surpassed the 8,900 level and touched an intra-day high of 8,960 (+267 points) before stabilising in the narrow range of 8,920-8,950 during closing hours,” Asia said. 

It said EXPO gained 11.4% on the back of buoyant retail and HNI buying and provided the biggest boost to the index, contributing 77 points, followed by BIL (+29 points) and LOLC (+23 points). Turnover improved as a result of activity in EXPO which accounted for 40% of the total.

Asia also said foreigners recorded a net outflow of Rs. 12 million while their participation declined to 0.8% of turnover (previous day 5.4%). Net foreign buying topped in EXPO at Rs. 12 million and net foreign selling topped in BIL at Rs. 8.6 million.

First Capital said the bourse hung on to the positive territory for the second consecutive day, while regaining 88% of point losses in ASPI from previous sessions. 

“Index began on an upbeat note and maintained its upward momentum throughout the session, before eventually levelling-off over the latter part of the session to finish solidly in the green, closing at 8,931,” First Capital added. 

It said turnover was supported by high retail participation. The Transportation sector dominated turnover, followed by the Food, Beverage and Tobacco sector, accounting for a joint contribution of 60%. 

NDB Securities too said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Browns Investments and LOLC Holdings.

It said high net worth and institutional investor participation was noted in LOLC Finance. Mixed interest was observed in Expolanka Holdings, Hayleys and LOLC Holdings, while retail interest was noted in Browns Investments, SMB Leasing voting and SMB Leasing non-voting. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) with the sector index gaining 11.42%. The share price of Expolanka Holdings increased by Rs. 17.50 (11.44%) closing at Rs. 170.50 while foreign holdings increased by 69,804 shares.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) with the sector index increasing by 1.84%. The share price of Browns Investments gained by 90 cents (10%) to close at Rs. 9.90.

Lanka Orix Finance, Hayleys and LOLC Holdings were also included amongst the top turnover contributors. The share price of Lanka Orix Finance moved up by 40 cents (4.88%) to close at Rs. 8.60. The share price of Hayleys recorded a gain of Rs. 3 (2.93%) to close at Rs. 105.50. The share price of LOLC Holdings appreciated by Rs. 21.25 (4.15%) to close at Rs. 533.25.