Net foreign inflow rises at CSE as SG Holdings back to buying mode of Expolanka

The Colombo stock market yesterday saw heavy foreign buying boosting year-to-date net inflow whilst indices closed on a positive note amidst high turnover.

Net foreign inflow amounted to Rs. 895 million yesterday mainly due to parent SG Holdings buying into Expolanka Holdings and increasing the YTD figure to Rs. 18.5 billion.

The benchmark ASPI gained by 0.6% and the S&P SL20 improved by 0.35%. Though modest gain it was a positive start for December. Turnover was Rs. 3.1 billion involving 176.5 million shares.

Asia Securities said the indices closed in green for the fifth consecutive session supported by price gains in front-line stocks EXPO (+1.3%), LOLC (+4.0%), LIOC (+2.8%), LOFC (+1.3%), and HAYL (+1.5%). Turnover was boosted by a significant contribution coming in from block trades (Rs. 818 million).

The ASPI moved upwards in the first half of the session and reached an intra-day high of 8,779 (+75 points) before consolidating at 8,704 (+53 points). Price losses in COMB (-2.5%), BIL (-4.0%), SAMP (-1.6%), and RICH (-2.2%) dented the ASPI’s upside movement during the session.

EXPO generated the highest turnover for the day (Rs. 1,117 million) followed by LIOC (Rs. 470 million), and BIL (Rs. 229 million). The breadth of the market remained positive with 122 price gainers and 77 decliners.

Net foreign buying topped in EXPO at Rs. 877.3 million while net foreign selling topped in MELS at Rs. 9.9 million. Crossings accounted for 28.7% of turnover with 23 crossings recorded in EXPON (Rs. 817.7 million), one crossing each in ASIYN (Rs. 43 million) and SIRAN (Rs. 33 million).

First Capital said the bourse recorded gains for the fifth straight day amidst the persisting optimistic sentiment on the back of positive developments on the economic front and rates easing. As the market opened, the index set off on a steady upward trajectory and peaked to an intraday high of 8,780 fuelled by retail participation. Subsequently, the index slid down but managed to maintain the positive momentum with the contribution from LOLC and DFCC before closing for the day at 8,704 gaining 53 points.

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Asia Siyaka Commodities and Sierra Cables. Mixed interest was observed in Lanka IOC, Sunshine Holdings and First Capital Holdings whilst retail interest was noted in SMB Leasing (voting and nonvoting), Browns Investments and LOLC Finance.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 1.29%. The share price of Expolanka Holdings increased by Rs. 2.50 (1.30%) to close at Rs. 195.50.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Finance) whilst the sector index increased by 2.19%. The share price of LOLC Finance recorded a gain of 10 cents to close at Rs. 7.90.

Lanka IOC, Browns Investments and Sunshine Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC gained Rs. 5.25 (2.77%) to close at Rs. 194.75. The share price of Browns Investments moved down by 30 cents (4%) to close at Rs. 7.20. The share price of Sunshine Holdings declined by Rs. 0.50 (1.32%) to close at Rs. 37.50.