CSE on the up by 0.60% on bargain hunting

The Colombo stock market rebounded yesterday buoyed by bargain hunting after a record single-day decline in the previous session.

The ASPI ended on the up by 0.60% or 134.03 points at 22,577.41 and the S&P SL20 gained 0.70% or 44.01 points to 6,357.66.

Turnover was nearly Rs. 4.7 billion on over 171.2 million shares traded. Foreign investors remained net sellers, posting a net outflow of Rs. 95.1 million.

Almas Equities Research said that following Tuesday’s panic-driven sell-off and circuit breaker trigger, the market rebounded yesterday with renewed positive momentum, partially erasing the prior session’s losses.

During the first half of the session, the ASPI surged by 486 points, reaching an intraday high of 22,833. However, the index later retraced some of these gains, eventually closing with moderate upside.

Investor sentiment remains cautious amid escalating geopolitical tensions in the Middle East. Nevertheless, value investors capitalised on yesterday’s sharp correction by selectively accumulating fundamentally strong counters. 

Market participants continue to monitor external developments closely before positioning for a sustained move toward new highs.

The capital goods sector dominated turnover, recording Rs. 1.5 billion with 25.84 million shares traded. AEL.N led sector activity, generating Rs. 0.34 billion in turnover with 3.5 million shares traded.

Crossings accounted for 4% of turnover at Rs. 0.20 billion. The largest crossing was recorded in AEL.N, amounting to Rs. 0.72 billion with 0.96 million shares traded.

Market breadth improved significantly, with 157 gainers and 77 decliners, indicating broader buying interest despite prevailing caution.

Positive contributors to the ASPI were SAMP.N (+21.65 points), followed by COMB.N, CTHR.N, RICH.N, and KZOO.N, while SFCL.N (-36.52 points) led the decline, while CARG.N, MELS.N, DOCK.N, and HHL.N also weighed on the index.

Among notable trades, KZOO.N recorded strong activity, posting Rs. 0.23 billion in turnover with 16.96 million shares traded, alongside a price gain of 21.0%.

First Capital Research said bargain hunting lifted the ASPI, following the record 1,291-points plunge in the previous session triggered by the outbreak of the Iran–Israel conflict that led to panic selling and a temporary trading halt.

The Colombo bourse recorded modest gains driven by buying interest at bargain prices. Market breadth was positive, with SAMP, COMB, CTHR, RICH, and KZOO leading the gains and contributing the most weight to the ASPI. 

The market gained momentum primarily driven by banking and other blue-chip counters. Meanwhile, the capital goods sector led daily turnover with a 32% share, followed by the diversified financials and banking sectors, which collectively accounted for 30% of total turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Access Engineering, Prime Lands Residencies and Colombo Dockyard. Mixed interest was observed in ACL Cables, Ceylon Land & Equity and Hatton National Bank whilst retail interest was noted in SMB Leasing, Industrial Asphalts and SMB Leasing Non-Voting. 

The capital goods sector was the top contributor to the market turnover due to ACL Cables, Access Engineering and Colombo Dockyard whilst the sector index gained 0.55%. The share price of ACL Cables decreased by 20 cents to close at Rs. 97.50. The share price of Access Engineering gained 90 cents to close at Rs. 75.00. The share price of Colombo Dockyard moved down by Rs. 2.75 to close at Rs. 138.50.

Diversified financials sector was the second highest contributor to the market turnover due to Ceylon Land & Equity while the sector index increased by 1.63%. The share price of Ceylon Land & Equity recorded a gain of Rs. 2.23 to close at Rs. 13.80. Prime Lands Residencies was also included amongst the top turnover contributors. The share price of Prime Lands Residencies appreciated by 60 cents to close at Rs. 54.50.