Net foreign inflow grows at Colombo stock market

• Spearheaded by SG Holdings of Japan buying into Expolanka Holdings, YTD net foreign inflow nears Rs. 30 b with Rs. 12 b so far in December

Net foreign inflow continues to flood the Colombo stock market albeit via SG Holdings of Japan as the year-to-date figure neared Rs. 30 billion mark with the addition of Rs. 2.9 billion yesterday.  

Most valuable listed entity, Expolanka Holdings overall saw 16.46 million of its shares change hands via 1,279 trades for Rs. 3.4 billion.



Of that, 13.652 million shares traded at Rs. 210 each via 45 crossings. Net foreign buying topped in Expolanka at Rs. 2.9 billion whilst so far in December the net inflow is Rs. 11.9 billion. Net foreign selling topped in HOPL at Rs. 7.9 million.

Apart from net foreign inflow, the Colombo stock market remained bearish with lacklustre local investor interest. The active S&P SL20 Index declined by 1.5% and the benchmark ASPI by 1%. Turnover was Rs. 4.6 billion involving 68.5 million shares.

Asia Securities said the indices remained in red for a fifth consecutive session on Wednesday (21) due to price losses in EXPO (-3.8%), BIL (-2.9%), CFVF (-1.4%), LOLC (-2.8%), and SCAP (-3.3%). However, AAIC (+2.3%), DIAL (+1.2%), SLTL (+2.8%), and LHCL (+1.4%) saw some buying support during the session. Turnover crossed Rs. 4 billion to reach a three-month high dominated by continued foreign inflows in EXPO (Rs. 2.9 billion).

The ASPI touched a high of 8,542 (+33 points) in early trading, however lost ground and eventually closed with a loss of 88 points (-1.0%) at 8,420. EXPO (-17 points) weighed down the ASPI the most during the session, followed by SAMP (-15 points), and SPEN (-9 points). The breadth of the market closed negative with 46 price gainers and 112 decliners.

First Capital said the bourse continued to record losses for the fifth straight session as selling pressure extended on heavyweights during today’s session. Moreover, investors turned slightly ambiguous following the statement from the State Minister of Finance where he mentioned that the IMF Board-Level Agreement is likely to go beyond January.

However, it is assured to be achieved during the first quarter of 2023. Despite a short-lived spike at the beginning, both ASPI and S&P SL20 indices moved on a continuous downward trajectory as selling intensified to close the day at 8,420, losing 88 points mainly with SAMP and EXPO dragging down the index.

NDB Securities mixed interest was observed in First Capital Holdings, John Keells Holdings and First Capital Treasuries whilst retail interest was noted in Browns Investments, Jetwing Symphony and LOLC Finance.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 3.76%. The share price of Expolanka Holdings decreased by Rs. 7.75 (3.77%) to close at Rs. 197.75.

The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 0.60%. The share price of Lanka IOC lost Rs. 1.25 (0.60%) to close at Rs. 205.75.

Browns Investments, First Capital Holdings and John Keells Holdings were also included amongst the top turnover contributors. The share price of Browns Investments moved down by 20 cents (2.94%) to close at Rs. 6.60. The share price of First Capital Holdings recorded a loss of 40 cents (1.44%) to close at Rs. 27.40. The share price of John Keells Holdings closed flat at Rs. 139.50.