Stock market rebounds

Wednesday, 25 November 2020 00:08 - - {{hitsCtrl.values.hits}}

The Colombo stock market bounced back thanks to renewed buying yesterday after multiple sessions of uncertainty whilst turnover slightly above the daily average.

Softlogic Stockbrokers said the All Share Price Index increased by 15.6 points or 0.3% whilst the more liquid S&P SL 20 Index also increased by 11.4 points or 0.5%. Turnover stood at Rs. 1.7 billion as against the daily average of Rs. 1.6 billion.

First Capital said JKH single-handedly sustained the momentum of the market keeping the hopes of breaking 6,100 alive.

“Market witnessed the highest net foreign inflow after four and half months while recording low participation,” it said.

“Index experienced a highly volatile movement throughout the session recording two peaks within the early hour and mid-day. Later market witnessed an upward movement during the latter part of the session and closed at 6,088 gaining 16 points,” First Capital added.

“Retail participation continued to drive the market whilst HNI and Institution activity declined,” Asia Securities said.

NDB Securities said indices closed in green as a result of price gains in counters such as John Keells Holdings, Ceylon Tobacco Company and Dialog Axiata.

High net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Commercial Bank, Haycarb and Tokyo Cement Company nonvoting, whilst retail interest was noted in Dipped Products, Expolanka Holdings and Swisstek.

Materials sector was the top contributor to the market turnover (due to Dipped Products and Swisstek) whilst the sector index gained 1.01%. The share price of Dipped Products gained Rs. 4.70 (1.52%) to close at Rs. 314.10. The share price of Swisstek recorded a gain of Rs. 5.80 (8.10%) to close at Rs. 77.40.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 1.00%. The share price of John Keells Holdings increased by Rs. 3.00 (2.11%) to close at Rs. 145.00.

Expolanka Holdings and Commercial Bank were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by Rs. 0.90 (3.40%) to close at Rs. 25.60. The share price of Commercial Bank appreciated by Rs. 0.10 (0.13%) to close at Rs. 76.60.

Separately Kelani Tyres announced an interim dividend of Rs. 5.00 per share.

Acuity Stockbrokers said foreign investors recorded a net inflow of Rs. 62.8 million as against a net outflow of Rs. 15.5 million on Monday.

Commercial Bank saw net foreign buying of Rs. 26.8 million followed by JKH worth Rs. 20.7 million and Dipped Products Rs. 11 million.