Stock market, investor sentiment rebound on CBSL move

The Colombo stock market yesterday snapped a three-day losing streak as investor sentiment bounced back after the Central Bank kept policy rates unchanged.

The All Share Price Index gained by 1.3% or 124 points and the S&P SL20 improved by 1.1% or over 40 points. Turnover however, dipped to Rs. 2.6 billion involving 105 million shares.

First Capital said the bourse jumped back to the green zone from Wednesday’s massive downfall while recording a two-and-a-half-week high gain as CBSL announced policy rates to be maintained at the current level.

“Index started with an immense gain of 114 points within the first 10 minutes of the session and steadily traded in the green zone throughout the session while holding the uptrend grip from the beginning. Index reached an intraday high of 9,633 during midday and gradually closed at 9,622,” First Capital added.

It said turnover was led by the Banking sector, followed by the Capital goods sector accounting for a joint contribution of 47%.

Asia Securities said the market ended in positive territory as the ASPI, having declined in the last three sessions, closed more than 1% higher on the back of price gains in index heavy CLC, EXPO, and LOLC. SAMP generated the highest turnover during the session at Rs. 605 million, boosted by two large block trades executed in the stock which amounted to Rs. 545 million while overall activity declined from yesterday’s level.

“Following Wednesday’s decline, the ASPI commenced trading with a sharp 115-point gap-up and steadied with positive momentum throughout trading hours without volatility as concerns over policy rates eased after the CBSL announced its decision of maintaining the rates at current levels,” Asia added. 

Market breadth turned positive with price gainers outnumbering decliners by a wide margin of 140 to 42.

Asia also said foreigners recorded a net outflow of Rs. 6 million while their participation remained flat at 0.9% of turnover (previous day 1%). Estimated net foreign buying topped in AHUN at Rs. 4.2 million and net foreign selling topped in COMB.N at Rs. 6.7 million.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Commercial Leasing & Finance, Expolanka Holdings and LOLC Holdings.

It said high net worth and institutional investor participation was noted in Sampath Bank, Aitken Spence and Asiri Hospital Holdings. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Hayleys, whilst retail interest was noted in Industrial Asphalts, Browns Investments and Kotagala Plantations. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank), whilst the sector index gained 0.61%. The share price of Sampath Bank increased by Rs. 1.30 (2.39%) to close at Rs. 55.70.

The Capital Goods sector was the second highest contributor to the market turnover (due to Aitken Spence), whilst the sector index increased by 1.13%. The share price of Aitken Spence moved up by Rs. 2.30 (2.74%) to close at Rs. 86.10.

Expolanka Holdings, Browns Investments and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 5.25 (2.79%) to close at Rs. 193.25. The share price of Browns Investments recorded a gain of 20 cents (1.94%) to close at Rs. 10.50. The share price of LOLC Holdings appreciated by Rs. 15.50 (2.63%) to close at Rs. 605.