Colombo stock market rebounds

The Colombo stock market yesterday bounced back led by the capital goods sector, following the recent bear run.

The benchmark ASPI gained by 0.46% and the active S&P SL20 by 0.28%. Turnover was at Rs. 1.47 billion involving 54.75 million shares.

Foreigners recorded a net inflow of Rs. 35.2 million. Net foreign buying topped in COMB.N at Rs. 54.4 million, while net foreign selling topped in HHL.N at Rs. 14.6 million.

First Capital said the CSE witnessed renewed investor optimism, marking a positive shift from the previous session. The ASPI opened on a strong note and maintained its momentum throughout the day, despite some intraday volatility. The index closed firmly in the green, gaining 72 points, depicting a 0.5% increment, to settle at 15,616. BIL, CINS, HAYL, MELS and GLAS were the top positive contributors to the index. 

It added that investor participation improved compared to the previous session, with heightened activity observed from both retail and high net worth (HNW) segments. 

The diversified financial sector continued to draw positive sentiment, maintaining its upward momentum, whereas banking sector counters remained subdued. Additionally, specific construction sector counters such as ALUM, garnered significant investor interest, reflecting focused optimism within the sector. 

The turnover stood at Rs. 1.5 billion, marking a 41% decrease from the monthly average of Rs. 2.5 billion. The topmost contributor to the turnover was the capital goods sector, which constituted a 21% share, followed by the materials, and diversified financial sectors together amounting to 32%. Foreign investors turned net buyers, with a net inflow of Rs. 35.2 million.

Asia Securities said indices closed in green yesterday with the ASPI gaining 72 points (+0.5%), while the S&P SL20 index gaining 13 points (+0.3%) supported by price gains in BIL (+4.1%), DIPD (+3.7%), and SUN (+2.7%). Moreover, investors showed increased interest in construction sector stocks like LALU (+6.6%), ALUM (+2.6%), and SIRA (+1.8%), along with NBFI sector stocks such as SFIN (+2.8%) and VFIN (+0.3%) during the session. 

Turnover amounted to Rs. 1.5 billion (previous session – Rs. 1.1 billion) mainly led by HHL (Rs. 103 million), COMBN (Rs. 82 million), and DFCC (Rs. 64 million). BIL (+9 points), CINSN (+9 points), and HAYL (+7 points) came in as the major index movers for the day. The market breadth was positive with 107 price gainers and 67 decliners.

NDB Securities said high net worth and institutional investor participation was noted in Diesel & Motor Engineering, LB Finance and DFCC Bank. Mixed interest was observed in Hemas

Holdings, Browns Investments and Alumex whilst retail interest was noted in SMB Leasing nonvoting, Hela Apparel Holdings and Raigam Wayamba Salterns. Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Capital Goods sector was the top contributor to the market turnover (due to Hemas Holdings and John Keells Holdings) whilst the sector index gained 0.73%. The share price of Hemas Holdings increased by 50 cents to close at Rs. 119.50. The share price of John Keells Holdings appreciated by 10 cents to close at Rs 20.

Materials sector was the second highest contributor to the market turnover, whilst the sector index increased by 1.47%.

Commercial Bank, DFCC Bank and LB Finance were also included amongst the top turnover contributors. The share price of Commercial Bank lost 75 cents to close at Rs. 135.75. The share price of DFCC Bank closed flat at Rs. 103. The share price of LB Finance closed flat at Rs. 92.90.