Bourse gains 0.22 percent

Retail, institutional  participation picking up

The Colombo Bourse closed 0.22 percent higher on positive market sentiments driven by retail and institutional participation on Wednesday (23) with turnover exceeding Rs. 1.27 billion.

The All Share Price Index gained 12.73 points to close 0.22 percent higher at 5,883.66 while the S&P SL20 closed 0.23 percent higher, gaining 7.23 points to 3,191.80.

Foreign selling, amounting to Rs. 664.26 million, outweighed purchases, resulting in a net outflow of Rs. 239.14 million.

A little more than six million Com Bank shares changed hands during the day with the share closing 10 percent lower at Rs. 104.10.

Environment Resources Investments (GREG) closed at Rs. 19.10, up 4.95 percent after more than 5.3 million shares were traded during the day.

PLC saw nearly 5.57 shares change hands, closing 0.62 percent lower at Rs. 16.10.

"The ASPI ended higher for a second consecutive day amid gains in some large caps. Turnover crossed the Rs. 1bn mark, mainly on the back of a block trade on COMB, which accounted for over 40% of total turnover. The market also saw crossings on PLC and CARS," John Keells Stockbrokers said.

"Market sentiment continued to remain positive with relatively strong retail and institutional participation. Turnover remained high at LKR1.3 bn, with parcels of Commercial Bank and Environmental Resources Investments changing hands that accounted for 58% of the day’s total. Gainers outpaced losers with Pegasus, Royal Ceramics and Kahawatte Plantations rising by 10.4%, 9.4% and 8.5% offsetting losses in Environmental Resources Investments (W0003), Environmental Resources Investments (W0006) and Lanka Floortiles which declined by 9.5%, 8.3% and 6.5% respectively," DNH Financial said.

"We expect the market to remain buoyant over the next couple of weeks with positive investor sentiment providing a healthy backdrop and consequently advise investors to be appropriately positioned to take advantage of the rerating in the market. In this respect we emphasize the need to focus on quality stocks that will outperform on a sustainable basis while avoiding counters that may generate short term gains without fundamental support. Consequently, a flight to quality strategy is strongly recommended in order to benefit fully from the market’s re-rating," it said.

Meanwhile, Senkadagala Finance PLC announced second interim dividend of 79 cents per share.

source - www.island.lk