The Colombo stock market yesterday staged a strong recovery with a near 2% gain in indices thanks to a rebound in buying sentiment.
The All Share Price Index gained by 1.95% or 148 points and the S&PSL20 index by 1.93% or 58 points. Turnover was below average at Rs. 3.34 billion.
LOLC (up Rs. 45.75 or 13.4 to Rs. 387.75) contributed most (over 49 points) to the ASPI’s gain followed by Browns Investments, John Keells Holdings PLC (up 2.4% to Rs. 160) and Hayleys PLC (up 6.25% or Rs. 4.30 to Rs. 73.10).
First Capital said the market extended its drive in the green territory, surging back to the bullish sentiment following its correction.
“Index experienced a rapid spike followed by a downtrend during the early hours of trading. Subsequently, the market bounced back and witnessed a strong upward movement till the end of the session,” it said.
The Capital Goods sector continued to lead the turnover for the session followed by Materials and Diversified Financials sector making a joint contribution of 70%.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Browns Investments and John Keells Holdings.
It said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Sampath Bank, Expolanka Holdings and Richard Pieris and Company, whilst retail interest was noted in Haycarb, LOLC Holdings and Browns Investments.
The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Richard Pieris and Company), whilst the sector index gained 2.55%. The share price of John Keells Holdings recorded a gain of Rs. 3.75 (2.40%) to close at Rs. 160. The share price of Richard Pieris and Company appreciated by Rs. 1 (5.88%) to close at Rs. 18.
The Materials sector was the second highest contributor to the market turnover (due to Haycarb), whilst the sector index increased by 3.50%. The share price of Haycarb gained Rs. 7.75 (6.97%) to close at Rs. 119.
LOLC Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of LOLC Holdings increased by Rs. 45.75 (13.38%) to close at Rs. 387.75. The share price of Browns Investments moved up by Rs. 0.50 (10.00%) to close at Rs. 5.50.
Separately Nestle Lanka announced a final dividend of Rs. 55 per share.
Net foreign selling was Rs. 123 million yesterday, down from Rs. 160 million on Wednesday, bringing the year-to-date total to Rs. 11.89 billion.
Estimated net foreign buying topped in Haycarb at Rs. 18.4 million and net foreign selling topped in Sampath Bank at Rs. 97.7 million.
Capital Trust said it believes that the market has now largely bottomed out and provides a good opportunity for investors to be appropriately positioned in fundamentally strong stocks that will outperform over the longer term.
“Investors are advised to carefully revisit their portfolios and start exiting out of fundamentally weak and non performing counters while repositioning themselves in quality stocks with strong earnings growth prospects,” it added.
(FT)