Net foreign inflow at CSE tops Rs. 26 b mark

Year-to-date net foreign inflow surpassed the Rs. 26 billion mark yesterday with continued purchase of Expolanka Holdings Plc shares by its parent SG Holdings of Japan.

The Colombo stock market saw Rs. 1.2 billion net inflow propelling the year to date figure to Rs. 26.6 billion, a 10-year high. So far in December net inflow is over Rs. 9 billion.

Apart from this silver lining, the Colombo Bourse remained negative owing to lacklustre interest from locals. 

The active S&P SL20 index declined by 2% and the benchmark ASPI by 1.36%. Turnover was Rs. 2.8 billion involving 70.8 million shares.

Asia Securities said price losses in heavyweight stocks LIOC (-5.7%), LOLC (-3.6%), LOFC (-3.8%), BIL (-5.6%), and RICH (-6.2%) continued to dampen market momentum as the indices trended downwards for the fourth consecutive session reaching a three-week low. 

However, strong foreign inflows in EXPO remained intact (Rs. 1.2 billion) pushing the MTD inflow to Rs. 9 billion. Market turnover was supported by EXPO (Rs. 1.4 billion), LIOC (Rs. 389 million), and JKH (Rs. 162 million). LIOC (-15 points) ended as the biggest laggard on the ASPI, followed by RICH (-12 points), BIL (-10 points), and LOLC (-10 points). Overall, 28 stocks ended in green while 139 closed lower.

First Capital said the bourse continued its downward momentum yet another day as sizable selling pressure was witnessed on index heavyweights including LIOC and BIL, as investoRs. urged to collect profits. As a result, the index fell lower and traded in the negative zone till the end of the session to close the day at 8,509 losing 118 points. 

Despite a drop, turnover improved to Rs. 2.8 billion (+22% cf. monthly average turnover of Rs. 2.3 billion) which was largely led by the Transportation sector with a contribution of 50% as foreign buying of Rs. 1.1 billion was enticed on EXPO during the day. 

NDB Securities said the ASPI closed in red as a result of price losses in counteRs. such as Lanka IOC, Richard Pieris & Company and Browns Investments.

It said high net worth and institutional investor participation was noted in Expolanka Holdings, John Keells Holdings and Lanka IOC. Mixed interest was observed in First Capital Holdings, Softlogic Life Insurance and CIC Holdings whilst retail interest was noted in Browns Investments, Softlogic Capital and Industrial Asphalts. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 0.60%. The share price of Expolanka Holdings decreased by Rs. 1.25 (0.60%) to close at Rs. 205.50.

The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 5.32%. The share price of Lanka IOC lost Rs. 12.50 (5.69%) to close at Rs. 207.

John Keells Holdings, Browns Investments and CIC Holdings were also included amongst the top turnover contributors. The share price of John Keells Holdings moved down by 50 cents to close at Rs. 139.50. The share price of Browns Investments recorded a loss of 40 cents (5.56%) to close at Rs

6.80. The share price of CIC Holdings declined by Rs. 2.80 (3.20%) to close at Rs. 84.60.