Renewed buying by investors saw the Colombo Stock Market produce a strong late rally yesterday, helping the benchmark index close on the up after having dipped by 1.7% earlier on, in a development reinforcing the new resilience. Profit taking continued from Tuesday when market opened yesterday triggering a free fall in the first half of trading. However, having fallen by 136 points or 1.7%, fresh round of buying ensured a stellar late sustained rally. This enabled ASPI to rise by 212 points from its intra-day low to close on the up 75 points or 1%. The more active S&P SL20 was erratic earlier on but ended closing up 37 points or 1.22%.
S&P SL20 Index has now overtaken the benchmark ASPI. The Year-to-Date (YTD) return of S&P SL20 was 17.37% as against 16.39% of ASPI. Last year S&P SL20 saw negative growth of 10.1%, whilst ASPI gained by 10.5%.
Hayleys (up 16.08% to Rs 577.50), Vallibel One, LB Finance and Expolanka were key contributors to the ASPI's gain.
Turnover was a robust Rs. 9.3 billion. SC Securities said JKH was the largest turnover contributor with Rs. 1.23 billion, though its price dipped by 2%. Expolanka Holdings and Seylan chipped in with over Rs. 600 million turnover, whilst Hayleys contributed Rs. 586 million. Apart from Browns Investments which topped volume wise (80.57 million shares), Sierra Cables saw 28 million of its shares traded.
Investors yesterday focused on stocks in the banking sector which produced the highest turnover of Rs. 2.9 billion with 42.8 million shares changing hands via 12,804 trades. 15 of the 16 listed stocks traded, whilst the sector PER is 6.24 times, below that of the market's 13 times. Likelihood of dividend declarations from the banking sector was a key factor for investor interest.
Turnover
First Capital said banking sector counters rallied to revert the direction of the market to positive sustaining the turnover above Rs. 9 billion.
“Index moved downwards within the early hour of trading as it hit its intraday low of 7,672. Thereafter, bounced-back and recorded a slight uptrend for the rest of the session and closed at 7,884 gaining 75 points,” it added.
The Banking sector led the turnover for the session, closely followed by the Capital Goods sector making a joint contribution of 61%. NDB Securities said the ASPI closed in green as a result of price gains in counters such as Hayleys, Vallibel One and LB Finance.
It said high net worth and institutional investor participation was noted in John Keells Holdings, Hatton National Bank non-voting and Seylan Bank.
Mixed interest was observed in Hayleys, HNB and Dipped Products, whilst retail interest was noted in Expolanka Holdings, Browns Investments and Lanka Orix Finance.
The Banking sector was the top contributor to the market turnover (due to Seylan Bank non-voting and HNB), whilst the sector index gained 2.14%. The share price of Seylan Bank non-voting moved up by Rs. 8.80 (18.72%) to close at Rs. 55.80. The share price of HNB appreciated by Rs. 0.50 (0.36%) closing at Rs. 139.50, whilst foreign holdings decreased by 1,339,936 shares.
The Capital Goods sector was the second highest contributor to the market turnover (due to JKH and Hayleys), whilst the sector index increased by 1.56%. The share price of JKH decreased by Rs. 3.25 (2.03%) closing at Rs.157.00, whilst foreign holdings decreased by 1,123,104 shares. The share price of Hayleys recorded a gain of Rs. 80 (16.08%) to close at Rs. 577.50.
Furthermore, Expolanka Holdings was also included amongst the top turnover contributors, whilst the share price of Expolanka Holdings gained Rs. 1.30 (2.60%) to close at Rs. 51.30.
Net foreign outflow yesterday was highest for the year at Rs. 650 million increasing the year-to-date figure to Rs. 2.88 billion. Asia Securities said estimated net foreign buying topped in TYRE at Rs. 7 million ($ 36,000) and net foreign selling topped in HNB at Rs. 219.4 million.
(FT)