CSE rebounds as net foreign buying tops Rs. 100 m

The Colombo stock market bounced back yesterday much to the relief of hard-core investors and brokers whilst net foreign buying topped Rs. 100 million mark.

The active S&PSL20 Index gained by 3.74% and the benchmark ASPI by 2.9%. Turnover was Rs. 1.5 billion involving 45 million shares.

Net foreign inflow amounted to Rs. 116.7 million led by Rs. 110 million net buying into Sunshine Holdings PLC.

Asia Securities said the indices trended upwards throughout the session, with the ASPI reclaiming the 8,000 level on the back of strong gains. EXPO (+4 points), LION (+3 points) and CINSX (+3 points) were the top positive contributors to the ASPI.

Turnover remained at moderate levels, while contribution from block trades declined relative to recent sessions (~11.8% of turnover vs. 28.4% of turnover on Monday).  Market activity topped in LIOC, SUN, EXPO and LDEV, with SUN leading foreign buying during the session. Market breadth remained negative with 88 counters up and 105 declining.

First Capital said the Bourse rebounded to green and recorded a gain after six consecutive days of losses (-642 points) while registering its highest intraday gain in 1 ½ -months. Index started on a solid footing and maintained its steep upward trajectory as buying infused with the speculations on policy easing from the upcoming policy meeting which scheduled to be held on Thursday.

Subsequently, the market managed to partly recoup earlier session losses and closed for the day at 8,000, gaining 223 points. Meanwhile, clarification on the fuel price revision formula improved the buying sentiment on LIOC. Turnover improved and was largely led by Capital Goods (25%) and Diversified Financials (21%) sectors.

NDB Securities said high net worth and institutional investor participation was noted in Sunshine Holdings, Commercial Bank and John Keells Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Dialog Axiata whilst retail interest was noted in Sri Lanka Telecom, First Capital Treasuries and The Colombo Fort Land & Building.

Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Sunshine Holdings and Lankem Developments) whilst the sector index gained 3.50%. The share price of Sunshine Holdings gained Rs 1.10 (3.44%) to close at Rs 33.10. The share price of Lankem Developments recorded a gain of Rs 5.20 (21.31%) to close at Rs 29.60.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 11.89%. The share price of Lanka IOC increased by Rs 20.50 (13.02%) to close at Rs 178.

Expolanka Holdings and Ceylinco Insurance were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs 14.25 (11.45%) to close at Rs 138.75. The share price of Ceylinco Insurance appreciated by Rs 146.00 (7.47%) to close at Rs 2,100.00.

Separately, Office Equipment announced a first interim cash dividend of Rs. 10 per share.