• Market’s value up by Rs. 61 b in two days; YTD net foreign inflows improve to Rs. 1.4 b

The recent rebound in the stock market following the Interim Budget blues is gathering momentum with value gaining by Rs. 61 billion during the past two days and year-to-date net foreign inflow improving to Rs. 1.4 billion with over a Rs. 500 million addition yesterday.

Since 2 February the market capitalisation has grown by Rs. 61 billion to stand at Rs. 3,095 billion. This was after around Rs. 168 billion in value lost after the Interim Budget owing to it being perceived as hostile to businesses. In that context the new rally is being welcomed. Lanka Securities said Colombo equities witnessed hefty returns yesterday driving the year-to-date yield to the positive territory. The all share index bagged 106.26 index points (+1.48%) while 20-scrip S&P SL index gained 88.19 index points or 2.21%. During the two days of this week, the main index inclined by 141.95 index points (+2.0%) while year-to-date return managed to move to 0.1% recovering the negative return of 4% recorded in last week. Softlogic Stockbrokers said the Bourse continued the uptrend for the fourth consecutive day where the crossings added around 51% to the daily turnover. Price advances in high cap counters such as Ceylon Tobacco (up 5.9%), John Keells Holdings (up 3.3%) and Commercial Bank (up 3.6%) and Dialog Axiata (up 9.3%) contributed favourably to the index performance. Daily market turnover reached a one-month high of Rs. 3.3 billion while the market recorded the highest volume (232 million) so far, this year. Deals on Vidullanka, and foreign play on JKH and local interest on Commercial Bank boosted the turnover. Following to release of positive earnings of Swisstek, counter attracted heavy investor attention during the day. Counter reached to 52 week high price of Rs. 43.80 and closed at Rs. 43.50 (+17.6%). Foreign investors were net buyers for the second consecutive day with a net inflow of Rs. 582 million. Net foreign inflows were seen in John Keells Holdings (Rs. 406 million), Millennium Housing (Rs. 176 million), People’s Leasing & Finance (Rs. 127 million) while net foreign outflow was mainly seen in Distilleries (Rs. 117 million). Accordingly, the year-to-date net foreign inflow crossed the Rs. 1 billion mark.