CSE dips but foreigners turn bullish with JKH-led net inflow of Rs. 450 m

The Colombo stock market couldn’t sustain its new found momentum yesterday as indices declined but foreigners turned net buyers led by premier blue chip John Keells Holdings Plc.

The benchmark ASPI declined by 0.5% and the active S&P SL20 by 0.3%. Turnover was Rs. 893.5 million involving mere 22.8 million shares.

Foreigners recorded a net inflow of Rs. 450 million with JKH seeing net foreign buying of Rs. 467 million. This is a welcome move given the fact that previous two sessions saw net foreign outflow.

Asia Securities said the indices closed in red due to low levels of retail and HNI activity. WATA (-7.0%), EXPO (-2.3%), TILE (-4.3%), CFVF (-6.3%), VONE (-4.4%), and ACL (-1.1%) closed with price losses while CCS (+1.6%), CICN (+2.9%), SAMPN (+2.0%), and COMBX (+4.2%) ended in green. The breadth of the market was negative with 52 price gainers and 111 decliners.

Turnover was led by JKH (Rs. 525 million). First Capital said the market commenced on an optimistic note yet succumbed to a downward trend towards the mid-day, and continued its volatile trajectory throughout the day with both the ASPI and S&P closing in the red zone at 8,713, losing 42 points.

JKH topped the turnover during the day and witnessed an off-board transaction totalling 3.2 million shares at Rs. 140 through foreign buying.

Furthermore, Watawala Plantations was amongst the biggest losers for the day after it reported a loss of Rs. 262.7 million for 4QFY23, representing a 133%YoY decline. Meanwhile, as a result of the rupee appreciation, export counters such as EXPO witnessed lacklustre investor sentiment. Moreover, following yesterday’s auction results, treasury shares came down as yield rates edged up by more than 8bps after two weeks.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Vallibel One, Expolanka Holdings and DFCC Bank. Crossings were witnessed in John Keells Holdings accounting for 50.7% of the turnover.

Mixed interest was observed in Watawala Plantations, Sunshine Holdings and Expolanka Holdings whilst retail interest was noted in SMB Leasing nonvoting, Blue Diamonds Jewellery Worldwide nonvoting and Industrial Asphalts.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged up by 0.06%. The share price of John Keells Holdings increased by 75 cents to Rs. 138.75.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Watawala Plantations and Sunshine Holdings) whilst the sector index decreased by 0.63%. The share price of Watawala Plantations lost Rs. 5.50 (6.98%) to Rs. 73.30. The share price of Sunshine Holdings closed flat at Rs. 43.

Expolanka Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a loss of Rs. 3.25 to Rs. 140.25. The share price of Lanka IOC declined by 75 cents to Rs. 133.25.