Colombo stock market rebounds as foreign buying persists

The Colombo stock market gathered more momentum yesterday with both indices up with improved turnover and more importantly net foreign inflow flowing. 

The ASPI gained by 12 points or 0.12% and S&P SL20 by 14 points or 0.45%. Turnover amounted to Rs. 4.6 billion involving 112.5 million shares.

Net foreign inflows neared the Rs. 11 billion mark year to date and Rs. 10.4 billion so far in September.

Asia Securities said following three consecutive sessions of losses, the indices edged higher in a range bound session. Turnover stood at Rs. 4,620 million (previous session – Rs. 6,052 million) amid continued foreign buying in EXPO, resulting in another strong net inflow of Rs. 969 million for the day. 

Among the front-line counters, LIOC (+3.8%), RCL (+3.0%), RICH (+1.3%), HHL (+3.2%), EXPO (+0.8%), and CICX (+0.6%) closed in green while HAYL (-2.5%), DIPD (-5.7%), SUN (-3.8%), TKYO (-5.0%), SCAP (-2.6%), and CIC (-0.6%) recorded price losses during the session. 

The ASPI commenced trading on a positive note touching a high of 9,942 (+41 points) at market open. Following this, the index reversed gains and moved in a narrow range 9,900-9,925 for the remainder of the session. Meanwhile, CARE (+14.0%), CFLB (+11.4%), HOPL (+6.6%), DPL (+6.5%) and ASIY (+7.1%) scaled sharp price increases, providing a cushion to the ASPI on the downside. The breadth of the market ended neutral with 110 price gainers and 101 decliners.

Asia also said foreigners recorded a net inflow of Rs. 990.4 million while  their participation declined to 11.8% of turnover (previous day 20.7%). Net foreign buying topped in EXPO at Rs. 968.6 million and selling topped in CIC.X at Rs. 3.3 million.

Crossings accounted for 23.2% of turnover with 20 crossings recorded in EXPON (Rs. 934.8 million), 2 crossings in CIC.N (Rs. 67.5 million), and 1 crossing in LIOC (Rs. 70.5 million).

First Capital said the bourse narrowly moved to green amidst a volatile trading session as most investors took a side-lined approach seeking direction on policy rates as yields plunged at today’s bill auction ahead of the Monetary Policy review meeting on 6 October. 

As soon as the market opened, index see-sawed from red to green with sharp volatility and closed positively at 9,913 gaining 12 points while buying interest was centred mostly on LIOC, SAMP and ACL. Turnover took a downturn compared to yesterday’s session and recorded at Rs. 4.6 billion (+18% cf. monthly average turnover of Rs. 3.9 billion) while the Transportation sector (26%) and Capital Goods sector (19%) collectively dominated the overall turnover with the largest contribution.

NDB Securities said High net worth and institutional investor participation was noted in Expolanka Holdings, Lanka IOC and CIC Holdings. Mixed interest was observed in ACL Cables, Printcare and Hayleys whilst retail interest was noted in Browns Investments, SMB Leasing and Asia Siyaka Commodities. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 0.78%. The share price of Expolanka Holdings increased by Rs. 1.75 (0.78%) to close at Rs. 226.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables and Hayleys) whilst the sector index increased by 0.90%. The share price of ACL Cables moved up by Rs. 8.60 (8.88%) to close at Rs. 105.50. The share price of Hayleys declined by Rs. 2.50 (2.51%) to close at Rs. 97.

Lanka IOC and Printcare were also included among the top turnover contributors. The share price of Lanka IOC gained Rs. 10.75 (3.84%) to close at Rs. 290.50. The share price of Printcare recorded a gain of Rs. 10.70 (14.01%) to close at Rs. 87.10.