CSE rebounds on improved investor sentiments

The Colombo stock market staged a comeback yesterday on improved investor sentiments especially on the banking counters. 

Both indices gained by 0.3% and turnover improved to Rs. 961.5 million involving 30 million shares.

Asia Securities said the market ended on a positive note as the indices closed in green with notable price gains recorded by SAMP (+1.4%), COMBN (+1.0%), SUN (+3.2%), DIAL (+2.1%), and VONE (+1.0%). SAMP (+1.4%) saw a pick-up in buying activity underpinned by the company’s dividend announcement. CALT (-1.4%), LFIN (-1.6%), AGST (-1.6%), and DIPD  (-1.1%) closed in red. 

Market activity improved with daily turnover being higher than previous day’s Rs. 695 million driven by SAMP (Rs. 121 million), COMBN (Rs. 106 million), and CARG (Rs. 81 million). 

Asia said foreigners recorded a net outflow of Rs. 92.5mn. Net foreign buying topped in SUN at Rs. 15.1 million and selling topped in COMB.N at Rs. 31 million.

First Capital said the bourse closed in the green zone rebounding after two consecutive sessions of decline. ASPI started off with a steep increase and held its position throughout the day, ending the day at 10,568 a 37-point increase from yesterday. Banking sector counters saw an increased buying interest; notably, SAMP and COMB. SAMP’s increased interest emerged following its final dividend announcement for the financial year of Rs. 5.85 per share. 

Turnover was 30% lower than the month’s average of Rs. 1.4 billion. Off- board transactions took place on the counters JKH, LOLC & CARG. The Banking and Capital Goods sector were the largest contributors to the market turnover with a joint contribution of 46%. 

NDB Securities said high net worth and institutional investor participation was noted in Cargills, John Keells Holdings and LOLC Holdings. Mixed interest was observed in Sampath Bank, Commercial Bank and Sunshine Holdings whilst retail interest was noted in Beruwala Resorts, Dialog Axiata and Vallibel Power Erathna. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Commercial Bank) whilst the sector index gained 0.61%. The share price of Sampath Bank increased by one Rupee to close at Rs. 73.10. The share price of Commercial Bank gained 90 cents to Rs. 89.50.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.20%. The share price of John Keells Holdings closed flat at Rs. 188. Cargills and Sunshine Holdings were also included amongst the top turnover contributors. The share price of Cargills edged down by 25 cents to Rs. 332. The share price of Sunshine Holdings appreciated by Rs. 1.70 to Rs. 55.20. Separately, Sampath Bank and HNB Assurance announced their dividends of Rs. 5.85 and 

Rs. 3.90 per share respectively.