CSE turns Tuesday-positive after 7 weeks; nets 2021’s highest foreign inflow of Rs. 118 m

The Colombo stock market managed to close on the up yesterday thanks to a late rally after a sharp dip in early trading. 

On a choppy day, the All Share Price Index (ASPI) closed over 12 points up or 0.18% and the S&PSL20 gained by over 15 points or 0.56%. Turnover was Rs. 973 million, up 28% from Monday.

First Capital said the market broke the Tuesday trend of being bearish after seven consecutive weeks on its second straight day in the green territory. 

“The index spiked within the first few minutes of trading, followed by a strong downtrend till mid-day hitting its intraday low of 6,912. Thereafter the market witnessed a strong uptrend and closed at 6,979 gaining 13 points,” First Capital added. 

It said the Capital Goods sector dominated the turnover for the session with a contribution of 59% aided by JKH. Parcel trades in JKH boosted the turnover for the session amounting to 19%. 

“The market experienced a net foreign inflow after nearly two weeks while recording low participation,” First Capital added. 

Asia Securities said the ASPI initially picked up to reach the 7,000 level (+33 points) before gradually declining to a low of 6,913 (-87 points). Following this, the index recovered the majority of its losses to close in the green. 

It said foreigners recorded their highest net inflow for the year at Rs. 118.1 million. JKH, which led in net foreign buying, accounted for 44% of total market activity. Estimated net foreign buying topped in JKH at Rs. 165.7 million and net foreign selling topped in HNB.X at Rs. 18.8 million. 

NDB Equities said that the ASPI closed in green as a result of price gains in counters such as Ceylon Tobacco Company, Vallibel One and Royal Ceramics.

It said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Royal Ceramics, Haycarb and Hayleys, whilst retail interest was noted in Expolanka Holdings, Dipped Products and Sampath Bank. 

The Capital Goods sector was the top contributor to market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index gained 0.85%. The share price of John Keells Holdings closed flat at Rs. 150 whilst foreign holdings increased by 1,104,677 shares. The share price of Royal Ceramics moved up by Rs. 10 (4.21%) to close at Rs. 247.25.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank), whilst the sector index increased by 0.43%. The share price of Sampath Bank gained Rs. 0.08 (0.16%) to close at Rs. 51.50. 

Dipped Products and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Dipped Products recorded a gain of Rs. 0.90 (2.04%) to close at Rs. 45. The share price of Expolanka Holdings appreciated by Rs. 0.20 (0.46%) to close at Rs. 43.50.