Stock market rebounds but YTD net foreign outflow tops Rs. 45 b

Thursday, 7 October 2021 04:35 - - {{hitsCtrl.values.hits}}

The Colombo stock market sustained its upward trend from a position of strength as both indices gained on healthy turnover.

The All Share Price Index gained by 93 points or nearly 1% and the S&PSL20 improved by 1.7% or 63 points.

Year-to-date the ASPI is up 42% and S&PSL20 higher by 36.5%. Turnover was Rs. 4.1 billion, marginally lower from Tuesday.

Net foreign outflow crossed the Rs. 45-billion-mark year-to-date with Rs. 101 million worth of net selling yesterday. Estimated net foreign selling topped in Dialog at Rs. 40.6 million while net buying topped in Royal Ceramics at Rs. 14 million.

Asia Securities said the market returned to positive territory as both the indices resumed their upward trajectory on the back of price gains in index heavy NIFL and LOLC, while Banking sector stocks also witnessed a significant pickup in prices during the session indicating an improved sentiment in the sector.

“Following Tuesday’s slight decline, the indices opened trading on a mixed note, but turned upbeat as the session progressed, owing to retail and HNI activity in selected heavy-weight counters. Eventually, the indices closed at all-time highs, with the ASPI ending above the 9,600 level and the S&P SL20 index closing above the 3,600 mark for the first time ever,” Asia added.

It said turnover remained at healthy levels supported by healthy buying extended by investors across sectors, while market breadth turned positive with price gainers outnumbering decliners by a wide margin of 137 to 74.

First Capital said the bourse switched back to the green zone, while surpassing the previous all-time high index.

“Trading kicked off with minor fluctuations but scaled higher as the day progressed. The index displayed an uptrend during the early hours of trading, and subsequently witnessed a sideways movement during mid-day and continued to rise at a steady pace towards the end, closing at 9,626,” First Capital added.

Turnover was led by the Banking sector, followed by the Capital Goods sector, accounting for a joint contribution of 40%.

NDB Securities the ASPI closed in green as a result of price gains in counters such as LOLC Development Finance, LOLC Holdings and Commercial Bank.

It said high net worth and institutional investor participation was noted in ACL Cables and Dialog Axiata. Mixed interest was observed in Expolanka Holdings, Sampath Bank and Commercial Bank, while retail interest was noted in Browns Investments, Amana Bank and SMB Leasing.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Amana Bank) while the sector index gained 4.77%. The share price of Sampath Bank moved up by Rs. 2.70 (4.95%) to close at Rs. 57.30. The share price of Amana Bank recorded a gain of 80 cents (25%) to close at Rs. 4.

The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables) while the sector index increased by 0.45%. The share price of ACL Cables appreciated by Rs. 1.20 (2.73%) to close at Rs. 45.20.

Expolanka Holdings and Browns Investments were also included among the top turnover contributors. The share price of Expolanka Holdings increased by 25 cents (0.13%) to close at Rs. 189.50. The share price of Browns Investments gained by 10 cents (0.94%) to close at Rs. 10.70.