CSE ends week with sharp loss but net foreign inflow rise Rs. 1.9 b

The Colombo stock market ended the week with sharp losses amidst lacklustre activity by bearish locals though foreigners remained net buyers.

During the week the ASPI and the S&P SL20 lost 2.6% and 3.7% respectively whilst recording an average daily turnover of Rs. 1.67 billion.  This is in contrast to the previous week when ASPI and the S&P SL20 gained 2.5% and 1.7% respectively whilst recording an average daily turnover of Rs. 2.18 billion.

Net foreign inflow yesterday was Rs. 173 million boosting the weeks figure to Rs. 1.9 billion, and to Rs. 3.2 billion so far in February and to Rs. 3.6 billion year-to-date.

Yesterday the ASPI closed in the red as a result of price losses in counters such as Teejay Lanka, DFCC Bank and Aitken Spence with the turnover crossing Rs. 1.4 billion, according to NDB Securities.

It said high net worth and institutional investor participation was noted in John Keells Holdings, Lanka Walltiles and Nations Trust Bank. Mixed interest was observed in Softlogic Life Insurance, Aitken Spence and Teejay Lanka whilst retail interest was noted in Softlogic Capital, Browns Investments and Agstar.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Aitken Spence and Lanka Walltiles) whilst the sector index lost 0.46%. The share price of John Keells Holdings decreased by 75 cents (0.52%) to close at Rs. 143.75. The share price of Aitken Spence moved down by Rs. 2.75 (1.80%) to close at Rs. 150.00. The share price of Lanka Walltiles declined by Rs. 1.30 (2.53%) to close at Rs. 50.

Insurance sector was the second highest contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index increased by 1.14%. The share price of Softlogic Life Insurance gained Rs. 8.25 (6.59%) to close at Rs. 133.50.

Teejay Lanka was also included among the top turnover contributors. The share price of Teejay Lanka recorded a loss of Rs. 2.20 (5.91%) to close at Rs. 35.00. Furthermore, Vidullanka, Keells Food Products and Dilmah Ceylon Tea Company announced their interim dividends of 10 cents, Rs. 1.50 and Rs. 10 per share respectively

First Capital said the bourse closed in red for the second straight session with a marginal loss as investors took a wait-and-see approach seeking further direction while poor overall quarterly earnings further prompted investors to take the sidelines.

The Index moved with significant volatility during the day and closed at 8,938 losing 24 points largely led by TJL as it reported a loss in the last quarter which is a decline of 149.6%YoY (-133.5%QoQ). However, during the day renewed interest was observed on AAIC which gained sharply on the back of rumours on the sale of the company.

Market turnover showed gradual improvement after the recent low and recorded at Rs. 1.4 billion (-34% cf. monthly average turnover of Rs. 1.8 billion) dominated by the Capital Goods sector which solely contributed 39% led by continuous foreign buying on JKH. Crossing transactions further hoisted revenue which accounted to 16.0% of overall revenue.

Asia Securities said the market closed out the week with a range-bound session on Friday as domestic investors maintained a “wait-and-see” approach due to mixed corporate earnings reports. 

The ASPI moved in the range of 8,920-8,960 while the S&P SL20 index traded between 2,750-2,770 throughout the session. 

Turnover came in at Rs. 1.4 billion (previous session Rs.  1.2 billion) supported by JKH (Rs. 203 million), AAIC (Rs. 187 million), and SPEN (Rs. 159 million). 

Front-line stocks AAIC (+6.6%), SCAP (+2.5%), SUN (+3.5%), ACL (+4.0%), and TKYOX (+1.8%) closed higher for the day while TJL (-5.9%), LWL (-2.5%), LIOC (-1.9%), and BIL (-1.6%) ended in red. Overall, 58 stocks recorded price gains while 113 ended with losses.