CSE ends three-day losing streak; YTD net foreign outflow tops Rs. 23 b

The Colombo stock market yesterday ended a three-day losing streak thanks to improved investor sentiments from retailers though low turnover and net foreign selling now over Rs. 23 billion year to date remain thorny. 

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 0.42% or 21.09 points to close at 5,040.88 points, while the S&P SL20 Index also increased by 0.05% or 1.02 points to close at 2,159.63.

Turnover decreased by 19.9% relative to Wednesday to Rs. 0.63 billion while the crossings accounted for 9.4% of the day’s total turnover. 

First Capital said continuous COVID-19 recoveries reverted the market back to its positive sentiment while witnessing retail buying interest in selective mid cap counters. 

“Breaking a streak of dominance held by the Banking sector over a week, Material sector made the highest contribution to the turnover for the session. Following a slight dip in the first few minutes of trading, market moved upwards continuously and reached its intraday high of 5,049 before closing at 5,041 gaining 21 points,” First Capital said. 

Acuity also said foreign investors recorded a net outflow of Rs. 0.08 billion compared to a net outflow of Rs. 0.05 billion on Wednesday.

According to First Capital the year to date net foreign outflow amounts to Rs. 23.4 billion according to First Capital. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Ceylon Tobacco Company, Carson Cumberbatch and Hayleys.

High net worth and institutional investor participation was noted in People’s Leasing & Finance, Vidullanka and Amana Bank. 

Mixed interest was observed in East West Properties, Dipped Products and John Keells Holdings, whilst retail interest was noted in Browns Investments, Commercial Bank and Hatton National Bank non-voting. 

Materials sector was the top contributor to the market turnover (due to Dipped Products) whilst the sector index gained 3.56%. The share price of Dipped Products gained Rs. 11.20 (8.91%) to close at Rs. 136.90.

The Banking sector was the second highest contributor to the market turnover whilst the sector index edged down by 0.07%. East West Properties, People’s Leasing & Finance, Browns Investments and Vidullanka were also included amongst the top turnover contributors. The share price of East West Properties increased by Rs. 1.70 (15.04%) to close at Rs. 13.00, while the share price of People’s Leasing & Finance moved up by Rs. 0.10 (0.87%) closing at Rs. 11.60 whilst foreign holdings decreased by 2,671,604 shares.

Furthermore, the share price of Browns Investments recorded a gain of Rs. 0.10 (4.55%) to close at Rs. 2.30, while the share price of Vidullanka closed flat at Rs. 4.50.