Stock market begins strongly in Avurudu month; YTD net foreign selling tops Rs. 18 b

• Bourse ends week on the up with improved turnover

The Colombo stock market began April on a strong note with both indices up with stepped up investor activity, though foreign exodus got aggressive with the year-to-date (YTD) figure topping the Rs. 18-billion-mark, raising concerns.

The All Share Price Index (ASPI) gained by 1% or 72 points and the S&P SL20 Index improved by 0.6% or over 17 points. Turnover was Rs. 1.5 billion with 86.3 million shares traded. 

First Capital said the Bourse continued its drive in the positive direction for the second consecutive session while recording a near three-week high. 

“Index experienced an upward movement till mid-day; thereafter, recorded a sideways movement till the latter part of the session. During the final 30 minutes of trading, market witnessed an uptrend once again and closed at 7,193, gaining 72 points,” First Capital said. It added that the Capital Goods sector led the turnover for the session, closely followed by the Food and Beverage sector making a joint contribution of 50%. 

Net foreign selling yesterday was Rs. 373 million, up from Rs. 37 million on Wednesday. The YTD net foreign outflow crossed the Rs. 18 billion mark from Rs. 16.2 billion at the end of last week. Estimated net foreign buying topped in CIC.X at Rs. 1.1 million and net foreign selling topped in JKH at Rs. 150 million.

Asia Securities said the ASPI trended upwards throughout the day, posting its highest points gain in five sessions. Turnover picked up on improved retail and HNI activity, it added.

Asia also said the ASPI gained 95.89 points (+1.35%) during the week, while the S&P SL20 gained 1.06 points (+0.04%). Turnover averaged Rs. 2.99 billion, improving from Rs. 1.27 billion last week.

NDB Equities said the ASPI closed in green as a result of price gains in counters such as Browns Investments, Expolanka Holdings and JKH.

It said high net worth and institutional investor participation was noted in Ceylon Tobacco Company and JKH. Mixed interest was observed in Hayleys, Royal Ceramics and HNB non-voting, whilst retail interest was noted in Sampath Bank, Expolanka Holdings and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to JKH), whilst the sector index gained 2.27%. The share price of JKH increased by Rs. 1.50 (1.01%), closing at Rs. 150, whilst foreign holdings decreased by 999,999 shares.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Ceylon Tobacco Company), whilst the sector index increased by 0.65%. The share price of Browns Investments gained Rs. 0.20 (3.64%) to close at Rs. 5.70. The share price of Ceylon Tobacco Company moved up by Rs. 9.75 (1.00%), closing at Rs. 989.50, whilst foreign holdings decreased by 142,221 shares. 

Expolanka Holdings and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a gain of Rs. 1.30 (2.91%) to close at Rs. 46.00. The share price of LOLC Holdings appreciated by Rs. 3.75 (1.28%) to close at Rs. 295.75.

Separately, Laxapana Batteries and Bairaha Farms announced their interim dividends of Rs. 1 and Rs 3 per share respectively