Colombo stock market manages to rebound

The Colombo stock market managed to bounce back yesterday after two days of declines though, for the indices, the recovery was choppy amidst improved turnover.

The active S&P SL20 gained by 0.6% or 21 points and the benchmark ASPI by 0.3% or 38 points. Turnover was Rs. 2 billion involving 86.4 million shares. 

On Tuesday the market suffered its biggest loss for a day in 2024.

Foreigners were net buyers yesterday to the tune of Rs. 150 million.

Asia Securities said following two sessions of downward movement, the market rebounded on Wednesday as investors resorted to bargain buying. 

COMB (+1.9%), CALT (+7.5%), LIOC (+3.4%), LOFC (+1.7%), and LOLC (+1.0%) saw a brief recovery from the previous session’s losses. The ASPI saw upside support from COMB (+13 points), JKH (+5 points), and LIOC (+6 points), while HNB (-6 points) and MELS (-5 points) countered with losses. Overall, 123 counters recorded price gains while 62 settled 

with losses.

Turnover was led by HNB (Rs. 319 million) driven by off-board transactions, followed by DIAL (Rs. 177 million), and LIOC (Rs. 167 million). 

Foreigners recorded a net inflow of Rs. 147.9 million. Net foreign buying topped in DIAL at 

Rs. 159.7 million and selling topped in RHTL.N at Rs. 9.9 million.

First Capital said the market experienced a mixed trading sentiment as uncertainty pertaining to debt restructuring caused major volatility in the investor sentiment and resulted in ASPI dipping more than 100 points in the morning yet recovering towards the latter part of the day to close at 11, 831, marking a gain of 39 points. 

Notably, blue-chip giants such as JKH, VONE, and LOLC spearheaded the ASPI’s ascent, supported by strong performances from COMB and LIOC. Trading activity remained moderate, with 17, 887 trades executed throughout the day. Retail investors displayed notable interest, particularly favouring the Banking and Hotel sector counters. 

The Banking sector led the charge, accounting for 31% of the turnover, followed by the Diversified Financials and Capital Goods sectors, contributing a collective 21%. 

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Dialog Axiata and Teejay Lanka. Mixed interest was observed in Lanka IOC, Ambeon Capital and Capital Alliance whilst retail interest was noted in Browns Investments, SMB Leasing and LOLC Finance. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank) whilst the sector index gained 0.30%. The share price of Hatton National Bank decreased by Rs. 2 to Rs. 194.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance) whilst the sector index increased by 0.90%. The share price of Capital Alliance appreciated by Rs. 4.40 to Rs. 63.40.

Dialog Axiata, Lanka IOC and Ambeon Capital were also included amongst the top turnover contributors. The share price of Dialog Axiata closed flat at Rs. 11.70. The share price of Lanka IOC moved up by Rs. 4.25 to Rs. 129.75. The share price of Ambeon Capital recorded a gain of 80 cents to Rs. 12.50.

After the market closed, Capital Alliance announced a second interim dividend of Rs. 15 per share.