Colombo stock market rebounds sharply; net foreign inflow rises to Rs. 673 m

The Colombo stock market yesterday bounced back sharply with both indices gaining on improved turnover and more importantly higher foreign net inflow.

The benchmark ASPI gained by 1.7% and crossed the 9,900 point level whilst the active S&P SL20 moved up by 1.5%. Turnover amounted to Rs. 4 billion involving 159 million shares.

 Foreigners recorded a net inflow of Rs. 673.7 million with net buying to the tune of Rs. 740 million in Expolanka Holdings.

The sharp rebound comes after the CSE on Tuesday closed on a negative note ending four days of gain. 

Asia Securities said the ASPI surpassed the 9,900 mark to record a new 5-month high boosted by price increases in heavyweights BIL (+2.6%), BRWN (+2.0&) JKH (+4.5%), TKYO (+6.5%), SUN (+3.2%), EXPO (+0.6%), and LIOC (+0.9%). 

Sectorally, banking stocks witnessed a buoyant session with HNB (+6.1%), SAMP (+10.6%), COMB (+4.7%), DFCC (+2.6%), ABL (+10.0%), PABC (+15.2%), SDB (+6.6%), UBC (+8.2%), NDB (+9.5%) and SEYBX (+17.3%) closing sharply higher. Furthermore, hotel sector stocks saw strong activity during the session led by CHOT (+20.1%), EDEN (+16.4%), KHL (+11.0%), AHUN (+7.6%), and GHLL (+17.3%). Turnover was led by EXPO (Rs. 842 million), as foreign buying continued on the stock. 

Asia said earlier, the ASPI commenced the session on strong momentum with a gap-up of 88 points and crossed the 9,900 level in mid-afternoon trading. After scaling an intra-day high of 9,936 (+187 points), the index consolidated at 9,914 at the back end of the session. 

SAMP ended as the biggest index driver, contributing 35 points to the ASPI followed by JKH (+20 points), COMB (+19 points), HNB (+14 points), and NDB (+10 points). The breadth of the market turned positive as 132 stocks recorded price gains during the session while 83 closed in red.

First Capital said the bourse rebounded to green while registering its highest intraday gain in two weeks as investors took positions and mainly traded on Banking and Hotel sector counters. Index started off on a solid footing and maintained its steep upward trajectory throughout the session. Accordingly, the market managed to recoup earlier session losses and closed for the day at 9,914, gaining 165 points. 

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Royal Ceramics and John Keells Holdings. Mixed interest was observed in Lanka IOC, Sampath Bank and Ceylon Hotels Corporation whilst retail interest was noted in Browns Investments, Industrial Asphalts and Co-Operative Insurance Company.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 0.55%. The share price of Expolanka Holdings increased by Rs. 1.25 (0.55%) to close at Rs. 227.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 0.23%. The share price of Browns Investments gained 20 cents (2.60%) to close at Rs. 7.90.

Lanka IOC, Sampath Bank and John Keells Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC moved up by Rs. 2.25 (0.86%) to close at Rs. 262.75. The share price of Sampath Bank recorded a gain of Rs. 3.50 (10.64%) to close at Rs. 36.40. The share price of John Keells Holdings appreciated by Rs. 6.00 (4.51%) to close at Rs. 139.

Separately Talawakelle Tea Estates announced a first interim cash dividend of Rs. 3 per share.