Net foreign inflow tops Rs. 3 b mark at CSE; locals still wary despite RW talk

The net foreign inflow to the Colombo stock market crossed the Rs. 3 billion mark year-to-date but locals remained wary resulting in mixed closing for indices. 

Foreigners accounted for net buying of Rs. 291.5 million boosting the YTD figure to Rs. 3.2 billion and month to date to Rs. 2.8 billion.



Net foreign buying topped in JKH at Rs. 180.9 million followed by Tokyo Cement X (Rs. 85 million) and Aitken Spence (Rs. 25.7 million).

Whilst bullish foreign outlook remains the sole silver lining, the indices struggled yesterday. The active S&P SL20 closed flat or down by 2.6 points whilst the benchmark ASPI gained by 11.6 points or 0.1%. Turnover was Rs. 1.2 billion involving just 43 million shares.

Asia Securities said the indices closed mixed as front-line stocks moved in opposite directions amid moderate retail and HNI activity. The ASPI edged 12 points higher (+0.1%) at 8,987 while the S&P SL 20 index ended at 2,783 (-2 points or -0.1%). 

Turnover was led by JKH (Rs. 190 million) and TKYOX (Rs. 98 million). 

The ASPI initially declined to an intra-day low of 8,913 (-74 points) in the first hour of trading, however the index reversed course subsequently and touched a high of 9,017 (+30 points) in mid-day trading. 

Following this, the ASPI consolidated in the range of 8,975-9,000 for the rest of the session. TKYOX (-3.2%), JKH (-1.0%), EXPO (-1.2%), HAYL (-1.1%), LIOC (-0.4%), and SCAP (-0.6%) closed in red while HNBN (+5.6%), BIL (+1.7%), LOFC (+1.6%), RCL (+2.2%) and LOLC (+3.6%) recorded price gains during the session. 

HNB (+14 points), LOLC (+9 points) and DFCC (+5 points) were the major index movers while MELS (-6 points), EXPO (-5 points), and HAYL (-5 points) came in as the top index draggers for the day. Overall, 91 stocks closed in green while 75 settled with losses.

First Capital said the index closed broadly flat with mixed sentiment during yesterday’s session while most of the retail investors took the sidelines as ambiguity rose over trade union protest. Initially the market dived to an intraday low of 8,911 following lower than expected results of counters such as MGT and TKYO which prompted selling in the market.

However, shortly the market picked up on a steady uptrend as Banking and Diversified Financials sector counters rallied following the President’s speech. Although the index crossed the 9,000-level by mid-day, it failed to secure the positive momentum as it closed at 8,987 with a narrow gain of 12 points. 

NDB Securities said high net worth and institutional investor participation was noted in Teejay Lanka and John Keells Holdings. Mixed interest was observed in Tokyo Cement Company nonvoting, Softlogic Life Insurance and Expolanka Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and Softlogic Capital. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.31%. The share price of John Keells Holdings decreased by Rs. 1.50 to Rs. 144.

The Materials sector was the second highest contributor to the market turnover (due to Tokyo Cement Company nonvoting) whilst the sector index decreased by 0.75%. The share price of Tokyo Cement Company nonvoting lost Rs. 1.10 (3.24%) to Rs. 32.90.

Softlogic Life Insurance, Expolanka Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of Softlogic Life Insurance closed flat at Rs. 122.75. The share price of Expolanka Holdings recorded a loss of Rs. 2.25 to Rs. 187.50. The share price of Lanka IOC declined by 75 cents to Rs. 195.50.