Challenging year comes to a close at Colombo stock market

• Final day and week of trading ends on a positive note but loses 31% in 2022
• Achieves 10-year high net foreign inflow of Rs. 30.6 b

A challenging year came to an end at the Colombo stock market yesterday with the indices posting gains in the final week and day of trading though losing 31% in 2022 despite achieving a 10-year high net foreign inflow of Rs. 30.6 billion. 

The market closed yesterday with the benchmark ASPI up 0.68% and the active S&P SL 20 by 0.36%. Turnover improved to Rs. 1.88 billion involving 239.3 million shares.

For the week the ASPI gained 109.7 points (+1.3%) and S&P SL20 gained 11.9 points (+0.5%). For the month ASPI lost 161.6 points (-1.9%) and S&P SL20 lost 94.4 points (-3.5%). The CSE ended 2022 with ASPI down 30.56% and the S&P SL20 by 37.74%. Average daily turnover was Rs. 2.97 billion.

The only redemption for the Colombo bourse was net foreign inflow soaring to a 10-year high of Rs. 30.6 billion with December contributing Rs. 13 billion. Sri Lanka’s highest ever net foreign inflow of a mammoth Rs. 38.6 billion in 2012.

Last year CSE suffered a net foreign outflow of Rs. 53 billion and in 2020, it was Rs. 51 billion and Rs. 11.7 billion and Rs. 23 billion in the preceding year. The previous net inflow was in 2017 at Rs. 17.6 billion.

Asia Securities said the market wrapped up 2022 on a positive footing with the ASPI gaining 58 points (+0.7%) and the S&P SL20 index ending 10 points (+0.4%) higher. Friday’s turnover was led by SCAP (Rs. 408 million), AAIC (Rs. 246 million), and LIOC (Rs. 183 million). 

Sectorally, Insurance stocks SCAP (+17.4%), COOP (+14.3%), and LGIL (+8.0%) saw significant gains during the session. Earlier in the day, the ASPI touched an intra-day high of 8,528 (+96 points), however it gradually dropped to 8,490 (+58 points) in the second half of the session. The breadth of the market closed positive with 112 price gainers and 68 decliners.

Foreigners recorded a net outflow of Rs. 64.7 million yesterday. Net foreign buying topped in GHLL at Rs. 9.6 million and selling topped in JKH at Rs. 65.1 million.

First Capital said the buying momentum continued for the second consecutive day while the broad market witnessed a recovery as investor optimism grew, expecting the interest rates to ease down following the results of the recent CBSL auctions. 

The Index spiked by over 90 points within the first hour of trading supported by index heavy weights, Insurance and Treasury counters. Afterwards, the index witnessed marginal volatility, yet managed to close the year on a positive note at 8,490, gaining 58 points. 

Moreover, MoM and YTD, ASPI dropped by 1.9% and 32.8%, respectively while YTD net foreign inflow surpassed Rs. 30.5 billion mark. Turnover continued to improve and recorded at a 1-week high of Rs. 1.9 billion (down 24% from monthly average turnover of Rs. 2.5 billion). 

Insurance sector contributed largely to the market turnover with a contribution of 43% followed by an 11% contribution from the Food, Beverage and Tobacco sector. Meanwhile, through an off-board transaction, 19% stake of TESS (105.8 million shares) changed hands at One Rupee per share.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Vallibel One, Co-Operative Insurance Company Limited and Hayleys.

It said high net worth and institutional investor participation was noted in Tess Agro. Mixed interest was observed in Softlogic Life Insurance, Lanka IOC and Expolanka Holdings whilst retail interest was noted in Softlogic Capital, Browns Investments and LOLC Finance. 

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index gained 1.10%. The share price of Softlogic Life Insurance lost Rs. 1.10 (1.25%) to close at Rs. 86.60.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover whilst the sector index increased by 0.87%.

Softlogic Capital, Lanka IOC, Expolanka Holdings and Tess Agro were also included among the top turnover contributors. The share price of Softlogic Capital increased by Rs. 1.50 (17.44%) to close at Rs. 10.10. The share price of Lanka IOC moved down by One Rupee to close at Rs. 202.75. The share price of Expolanka Holdings recorded a gain of Rs. 1.25 (0.69%) to close at Rs 182.25.

The share price of Tess Agro appreciated by 10 cents (10%) to close at Rs. 1.10.

Separately Haycarb, Talawakelle Tea Estates, Hayleys Fibre, Dipped Products, Hayleys Fabric and Kelani Valley Plantations announced their interim dividends of Rs. 1.50, Rs. 5.00, One Rupee, One Rupee, 20 cents and Rs. 3 respectively.