CSE sees net foreign inflow but locals bearish

The Colombo stock market continued its negative run as it began a fresh week with locals remaining bearish despite net foreign buying. 

The benchmark ASPI declined 1% and the active S&P SL20 dipped 0.5%. Turnover was Rs. 1.4 billion involving 134 million shares.

The market saw a net foreign inflow of Rs. 92 million on account of Rs. 121.5 million buying on HNB voting shares. 

Asia Securities said the indices closed lower for the fifth consecutive session on Monday while turnover continued at moderate levels. 

The ASPI commenced trading with a 56-point gap up to 8,372, and remained in the range of 8,300-8,350 till mid-afternoon trading. However, the index saw a sharp decline in the last thirty minutes of the session due to a sharp price decline in CINS (14%). 

Eventually, the ASPI ended with a loss of 84 points (1.0%), while the more liquid S&P SL20 index edged down 14 points (0.5%). Turnover was led by BIL (Rs. 404 million), EXPO (Rs. 156 million), and HNB (Rs. 122 million). Overall, 55 stocks recorded price gains during the session and 118 ended with losses. JKH saw foreign sales of Rs. 31.4 million.

First Capital said the bourse recorded losses for the fifth straight session with trades taking a subdued note as investors waited for further clarity on the tax front following Prime Minister’s statement on introducing a new committee system essentially on Government finance and monetary affairs while bringing along other political reforms. 

“Index opened on a positive note and moved on a downward trajectory throughout the session as selling pressure built up and closed for the day at 8,231 losing 84 points. Turnover was at a near three-week low while it was led by a joint contribution of 53% from the Food, Beverage and Tobacco sector and Banking sector,” it added. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Ceylinco Insurance, John Keells Holdings and Lanka IOC.

It said high net worth and institutional investor participation was noted in Hatton National Bank, John Keells Holdings, and Seylan Bank non-voting. Mixed interest was observed in Expolanka Holdings, Melstacorp and Lanka IOC whilst retail interest was noted in SMB Leasing voting and nonvoting, Browns Investments and LOLC Finance. 

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Melstacorp) whilst the sector index gained 0.45%. The share price of Browns Investments closed flat at Rs. 10.40. The share price of Melstacorp recorded a gain of Rs. 2.80 (6.86%) to close at Rs. 43.60.

The Banking sector was the second-highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index decreased by 0.60%. The share price of Hatton National Bank moved up by Rs. 0.80 (1.03%) to close at Rs. 78.30. 

Expolanka Holdings and John Keells Holdings were also included among the top turnover contributors. The share price of Expolanka Holdings lost Rs. 1.75 (0.78%) to close at Rs. 222.75. The share price of John Keells Holdings declined by Rs. 1.50 (1.20%) to close at Rs. 124.00.

Separately Vidullanka and Lanka Walltiles announced their interim dividends of Rs. 0.10, and Rs. 2.90 per share respectively, whilst Sri Lanka Telecom and Dialog Axiata announced their first and final dividends of Rs. 2.02 and Rs. 1.24 per share respectively.