Stock market rebounds with renewed buying

The Colombo stock market bounced back yesterday as another week finished on a positive note ably supported by improved investor sentiment.

The All Share Price Index gained by over 25 points or 0.25% and the S&P SL 20 by 21 points or 0.57% after the two dipped on Thursday.

Turnover, too, improved to Rs. 5 billion from Rs. 4 billion the previous day.

Asia Securities said the market returned to positive territory with both indices showcasing a strong rebound following a volatile opening, supported by price gains in JKH, LION, EDEN and RCL. 

It said turnover was boosted by EXPO which accounted for 23 of total on the back of a stronger quarterly earnings report released by the company. However, the stock closed unchanged at Rs. 216.25 after touching a high of Rs. 222 (+1.0%) during the session. 

“Earlier, the ASPI touched an intra-day low of 10,057(-81 points) during the market open and surged 105 points to 10,162 within a few minutes. The index again moved downwards shedding 70 points and reached 10,092 in mid-afternoon, trading largely weighed by price declines in index-heavy LOLC and CLC. Thereupon, the ASPI gradually regained ground and eventually closed in green at 10,163 recouping all of its intra-day losses,” Asia said. The breadth of the market was almost neutral with 99 stocks advancing against 100 declining. 

Foreigners recorded a net outflow of Rs. 403 million while their participation increased to 4.7% of turnover (previous day 2.0%). Net foreign buying topped in RCL at Rs. 4 million while net selling topped in LLUB at Rs. 321.6 million. 

First Capital said the bourse jumped back to the green zone, ending the week with a marginal gain despite a further downgrade by Moody’s.

“During the first half of the session, the index displayed major volatility losing points within the initial 15 minutes and slowly managed to recover as bulls began to dominate. Towards the end, the market continued to hold the upward movement closing the week positively at 10,163 gaining 25 points,” First Capital added.

It said turnover was led by the Capital Goods sector, followed by the Transportation sector accounting for a joint contribution of 48%.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as John Keells Holdings, Lion Brewery and Eden Hotel Lanka.

It said high net worth and institutional investor participation was noted in Hatton National Bank, Commercial Bank and Chevron Lubricants. Mixed interest was observed in John Keells Holdings, Royal Ceramics and LOLC Holdings, whilst retail interest was noted in Browns Investments, Kotagala Plantations and Expolanka Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics), whilst the sector index gained 1.07%. The share price of John Keells Holdings moved up by Rs. 2.75 (1.88%) to close at Rs. 149. The share price of Royal Ceramics recorded a gain of Rs. 1.90 (3.38%) to close at Rs. 58.10.

Transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index remained stagnant. 

Chevron Lubricants and Hatton National Bank were also included amongst the top turnover contributors. The share price of Chevron Lubricants gained Rs. 4 (3.64%) to close at Rs. 114. The share price of Hatton National Bank appreciated by Rs. 2 (1.27%) to close at Rs. 160.

Separately Lanka Tiles and Lanka Walltiles announced their interim dividends of Rs. 3 and Rs. 3.10 per share, respectively.