Colombo stock market sees 4 days of net foreign inflow

The Colombo stock market yesterday marked four consecutive sessions of net foreign inflow, a development that has lifted sentiments of investors and brokers alike.

Since 5 August, there has been a net inflow of Rs. 94 million, modest yet analysts viewed it as significant given the fact until last Thursday the year to date net foreign outflow was a record Rs. 35.6 billion (over $ 170 million).

Of the four consecutive sessions, yesterday’s inflow was the highest at Rs. 41.6 million. Royal Ceramics, Lanka Tiles, Lanka Walltiles and Sampath Bank have seen foreign buying along with Expolanka Holdings topping yesterday.

Apart from net foreign inflows, the Colombo stock market saw indices decline but turnover was stronger. 

The All Share Price Index was down by over 30 points or 0.4% and the S&PSL 20 dipped by near 7 points, or 0.22%. Turnover improved to Rs. 4.7 billion from Monday’s Rs. 3.8 billion.

First Capital said the bourse ended trading in the red territory, as bears staged a comeback after a two-day respite on the back of profit-taking in selected counters and amidst deepening pessimism over a rise in COVID-19 infections with the new variant. 

“Initially, trading kicked off on a positive note, however, the index soon began moving laterally till the second half of the session and thereafter displayed a steep decline, pulling the index down by 31 points while closing at 8,071,” First Capital added. 

It said turnover was led by the Transportation sector, followed by the Capital Goods sector accounting for a joint contribution of 51%. 

Asia Securities said the ASPI commenced trading with a gap-up of 31 points and hovered in a narrow range of 8,120 and 8,140 in the first half of trading, supported by price gains in EXPO, TAP and GREG. Companies in the Tile sector also saw interest during the day with better-than-expected earnings results despite a lockdown-affected quarter. 

“However, persistent concerns over the rise in COVID-19 cases and media reports speculating new travel restrictions dented sentiment and prompted a sell-off in the second half of trading. Eventually, the ASPI closed in red, dragged by price losses in LOLC and NIFL while overall activity remained at strong levels on the back of activity in EXPO,” Asia added. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, LOLC Development Finance and Browns Investments.

It said high net worth and institutional investor participation was noted in Commercial Bank and Royal Ceramics. Mixed interest was observed in Expolanka Holdings, Ambeon Holdings and Lanka Tiles, whilst retail interest was noted in Browns Investments, Kotagala Plantations rights and Renuka Capital. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 2.34%. The share price of Expolanka Holdings increased by Rs. 1.90 (2.35%) closing at Rs. 82.60, whilst foreign holdings increased by 312,501 shares.

Capital Goods sector was the second-highest contributor to the market turnover (due to Royal Ceramics and Lanka Tiles), whilst the sector index edged down by 0.12%. The share price of Royal Ceramics gained Rs. 0.70 (1.79%) to close at Rs. 39.70. The share price of Lanka Tiles recorded a gain of Rs. 2.50 (4.17%) to close at Rs. 62.50.

Ambeon Holdings and LOLC Holdings were also included amongst the top turnover contributors. The share price of Ambeon Holdings moved up by Rs. 3 (8.11%) to close at Rs. 40. The share price of LOLC Holdings declined by Rs. 8.50 (1.85%) to close at Rs. 450.

Separately, Access Engineering and Vallibel Power Erathna announced their interim dividends of Rs. 0.25 and Rs. 0.70 per share, respectively.