Stock market rebounds to finish on the up

Thursday, 25 February 2021 02:34 - - {{hitsCtrl.values.hits}}

The Colombo stock market produced signs of a rebound yesterday with both indices closing positive, though turnover remained low.

The All Share Price Index (ASPI) gained over 42 points or 0.6%, and the S&P SL20 Index closed almost unchanged. Turnover was Rs. 2.6 billion, down by 7.4% from Tuesday.

First Capital said the Bourse reverted the direction, breathing out of the downfall witnessed for the past two consecutive sessions.

“Index experienced a zigzag movement within the early hour of trading; thereafter, recorded a slight uptrend as it reached its intraday high of 7,439. Later, market witnessed downtrend during mid-day, followed by a sideways movement and closed at 7,372 gaining 43 points,” First Capital said.

It said the banking sector dominated the turnover for the session with a contribution of 30%. Parcel trades in SAMP, COMB and JKH boosted the turnover amounting to 19%.

NDB Securities said the ASPI closed in green because of price gains in counters such as Vallibel One, Distilleries and Ceylinco Insurance.

It said high net worth and institutional investor participation was noted in Sampath Bank, Commercial Bank and JKH. Mixed interest was observed in Hayleys, Royal Ceramics and LOLC Holdings, whilst retail interest was noted in Expolanka Holdings, Dipped Products and Browns Investments.

The banking sector was the top contributor to the market turnover (due to Commercial Bank and Sampath Bank), whilst the sector index lost 0.57%. The share price of Commercial Bank decreased by Rs. 1 (1.16%) to close at Rs. 85.00. The share price of Sampath Bank lost Rs. 0.50 (0.32%), closing at Rs. 154.00, whilst foreign holdings decreased by 2,061,300 shares.

The capital goods sector was the second highest contributor to the market turnover, whilst the sector index increased by 1.36%.

Expolanka Holdings, LOLC Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 0.50 (1.23%) to close at R.s 41.00. Moreover, the share price of LOLC Holdings recorded a loss of Rs. 6.50 (1.79%) to close at Rs. 357.50, whilst the share price of Dipped Products appreciated by Rs. 0.90 (1.83%) to close at Rs. 50.10.

Net foreign selling was Rs. 381 million, up from Rs. 197 million on Tuesday. The year-to-date net foreign selling rose to Rs. 12.7 billion.

Separately, Seylan Developments announced a first and final dividend of Rs. 1.20 per share. Commercial Development Company announced a final dividend of Rs. 3.50 per share.