Stock market gains but YTD net foreign selling races to Rs. 17.5 b

• HNB, COMBank figure in Rs. 1.3 b net selling yesterday, highest in 2 months 

The Colombo stock market began a fresh week on a positive note with indices up amidst improved turnover, but net foreign selling hit a new high bringing the year-to-date figure to over Rs. 17 billion.  The All Share Price Index (ASPI) gained by 30 points or 0.4% and the S&PSL20 moved up 17 points or 0.6%. Turnover amounted to Rs. 2.18 billion, up 36% from Friday while crossings accounted for 49.82% of the turnover. 

First Capital said the Bourse started the week reverting the direction back to positive after two consecutive sessions in negative territory, while recording a near three-week high turnover. 

“Index experienced a short-lived spike within the first few minutes of trading, thereafter witnessed a continuous upward movement reaching its intraday high of 7,149 during mid-day. Later market recorded sideways movement and closed at 7,128 gaining 30 points,” it added.

Net foreign selling jumped to a new record of Rs. 1.3 billion raising the year-to-date figure to Rs. 17.5 billion. HNB saw net foreign selling of Rs. 566.7 million. Commercial Bank saw Rs. 495.4 million worth of net foreign selling and HNB non-voting saw a further Rs. 141 million followed by Rs. 88 million in JKH. 

First Capital said the market witnessed the highest net foreign outflow after two months while recording high participation.

It also said banking sector counters dominated the turnover for the session with a contribution of 63%. Parcel trades boosted the turnover for the session amounting to 50% of the total. 

NDB Equities said the ASPI closed in green as a result of price gains in counters such as Ceylinco Insurance, Commercial Bank and Aitken Spence.

It said mixed interest was observed in Dipped Products, Piramal Glass and Hatton National Bank nonvoting, whilst retail interest was noted in Expolanka Holdings, First Capital Holdings and Sampath Bank. 

The banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank and Hatton National Bank non-voting), whilst the sector index gained 0.81%. The share price of Hatton National Bank decreased by Rs. 2.50 (1.90%) closing at Rs. 129.25, whilst foreign holdings decreased by 4,384,883 shares. 

The share price of Commercial Bank gained Rs. 2.20 (2.48%) closing at Rs. 90.80, whilst foreign holdings decreased by 5,456,000 shares. The share price of Hatton National Bank nonvoting moved up by Rs.

2 (2%) to close at Rs. 102. 

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index increased by 0.62%. The share price of John Keells Holdings recorded a gain of Rs. 0.50 (0.34%) to close at Rs. 149.50.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings appreciated by Rs. 0.60 (1.34%) to close at Rs. 45.30.

Separately Mahaweli Coconut Plantations, Richard Pieris & Company and Hayleys announced their interim dividends of Rs. 0.75, Rs. 0.50 and Rs. 1 per share respectively.

Capital Trust said with only a couple of days remaining until the close of the March financial year, it expects the market to continue to trade range-bound in the immediate term. “In this scenario, we advise that investors gradually start accumulating a well-diversified portfolio of stocks which are cash-generative, have strong earnings and revenue growth attributes, and possess the ability to outperform over the long term,” it added.