Stock market rebounds; turnover 40% less of month’s daily average

Wednesday, 28 October 2020 00:15 -     - {{hitsCtrl.values.hits}}

The Colombo Stock Market yesterday bounced back to close on the up, whilst yet again managing Rs. 1 billion plus in turnover. 

After two consecutive negative sessions, the All Share Price Index (ASPI) yesterday gained by 11 points or 0.2% and the S&P SL20 index inched up by 6 points or 0.3%. Turnover was Rs. 1.09 billion, continuing the record of over-a-billion figure for over 35 days. 

First Capitals said market reverted back to positive territory amidst the continuous spread of COVID-19, while investors adopted a wait-and-see approach, causing the turnover to record less than 40% of the daily average for the month, for the second consecutive session. 

“Index spiked within the first few minutes of trading, thereafter recorded a gradual downtrend for the rest of session,” it added.

First Capital said materials sector counters continued to lead the turnover, followed by the banking sector, making a joint contribution of 53%. 

“Market experienced a consecutive net foreign outflow for three weeks, while recording low participation,” it added, with yesterday’s amount being Rs. 211 million, up from Rs. 20 million on Monday.

Asia Securities said retailers and high net worth individuals dominated market activity, however, activity remained low as investors continued to adopt a wait-and-see approach given the uncertainties surrounding the virus and the month end approaching. “Institutions were seen buying into the blue chips albeit in small volumes,” it added.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Bukit Darah, John Keells Holdings and Melstacorp.

It said high net worth and institutional investor participation was noted in Hatton National Bank (HNB). Mixed interest was observed in Tokyo Cement Company non-voting, Expolanka Holdings and Tokyo Cement Company, whilst retail interest was noted in Dialog Axiata, Dipped Products and Commercial Bank. Materials sector was the top contributor to the market turnover (due to Tokyo Cement Company non-voting and Tokyo Cement Company), whilst the sector index gained 1.58%. The share price of Tokyo Cement Company non-voting increased by Rs. 2.60 (5.34%) to close at Rs. 51.30. 

The share price of Tokyo Cement Company recorded a gain of Rs. 2.30 (4.03%) to close at Rs. 59.40.

The Banking sector was the second highest contributor to the market turnover (due to HNB), whilst the sector index edged up by 0.01%. The share price of HNB moved up by Rs. 0.40 (0.35%) to close at Rs. 113.50.

Expolanka Holdings and Dialog Axiata were also included amongst the top turnover contributors. Furthermore, the share price of Expolanka Holdings gained Rs. 0.40 (2.31%) to close at Rs. 17.70, whilst the share price of Dialog Axiata closed flat at Rs. 10.90.


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