Local investor sentiment lacklustre; Net foreign outflow tops Rs. 27 b

The Colombo stock market remained bearish for the second consecutive day amidst lacklustre investor sentiment and activity whilst year to date net foreign outflow crossed the Rs. 27 billion mark.

The All Share Price Index closed flat or 2 points down whilst the S&PSL20 Index dipped by over 21 points or 0.7%. Turnover was Rs. 1.3 billion involving 63.4 million shares.

Net foreign outflow crossed the Rs. 27 billion mark with the addition of Rs. 210.6 million in net selling yesterday.

First Capital said the Bourse slipped back into the red zone disrupting the winning streak of last two sessions with a notable negative sentiment observed on every Tuesday in recent trading sessions. “Within the first 15 minutes of trading, ASPI soared to an intraday high of 7,861, before gradually declining throughout the rest of the session, hitting an intraday low of 7,778 closing at 7792,” First Capital said. 

It said moderate turnover was led by the Capital Goods sector followed by the Diversified Financials sector accounting for a joint contribution of 51%. Parcel trades accounted for 18% of the turnover. 

Asia Securities said the ASPI commenced the session with a gap-up of 65 points, however the index reversed early gains as it gradually declined to below 7,800 level, on the back of price losses in index-heavy counters NIFL, JKH and LOLC. 

Turnover topped in JKH, boosted by block trades in the stock while overall activity was recorded at moderate levels. 

Capital Goods, Diversified Financials, Materials and Food & Staples Retailing sectors led activity, collectively accounting for 73.3% of turnover. 

Foreigners recorded a net outflow of Rs. 210.6 million while their participation declined to 9.6% of turnover (previous day 42.6%). Estimated net foreign buying topped in DIPD at Rs. 12.4 million and net foreign selling topped in JKH at Rs. 127.8 million. 

NDB Securities said the ASPI edged down as a result of price losses in counters such as LOLC Development Finance, John Keells Holdings and Ceylon Cold Stores.

It said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Cargills, LOLC Holdings and Dipped Products, whilst retail interest was noted in Lanka Orix Finance, Commercial Leasing & Finance and Browns Investments. Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings and Cargills.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings), whilst the sector index lost 0.60%. The share price of John Keells Holdings decreased by Rs. 3.00 (2.24%) closing at Rs. 131.00 whilst foreign holdings decreased by 975,422 shares.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings and Lanka Orix Finance), whilst the sector index increased by 0.96%. The share price of LOLC Holdings moved down by Rs. 2.75 (0.69%) to close at Rs. 395.00. The share price of Lanka Orix Finance recorded a gain of Rs. 0.80 (12.70%) to close at Rs. 7.10.

Cargills and Dipped Products were also included amongst the top turnover contributors. The share price of Cargills gained Rs. 5.00 (2.04%) closing at Rs. 250.00, whilst foreign holdings decreased by 379,571 shares. The share price of Dipped Products declined by Rs. 0.80 (1.52%) to close at Rs. 51.90.