Profit taking ends CSE’s 9-day winning streak; foreigners turn net buyers

The Colombo stock market yesterday ended its nine-day winning streak amidst robust activity as investors took profit. 

The more active S&P Index declined by 0.6% and the benchmark ASPI by 0.5%. Turnover amounted to Rs. 1.6 billion involving 66.4 million shares. 

Foreigners recorded a net of inflow of Rs. 1.1 million with CCS seeing most net buying worth Rs. 3.6 million, whilst selling topped in BALA Rs. 3.3 million.

With yesterday’s net buying, the amount so far in December is Rs. 3.8 billion and pushed the year-to-date fighter to Rs. 21.4 billion.

Asia Securities said the indices snapped a nine-day gaining streak on Friday largely due to price losses in front-liners LOFC (-1.2%), JKH (-1.5%), CFLB (-3.0%), SPEN (-2.1%), and COMB (-1.4%). On the contrary, LIOC (+2.1%), BIL (+1.3%), RICH (+3.7%), CICX (+1.8%), and AGST (+3.5%) managed to scale higher in an otherwise negative session. 

However, on a weekly basis, Asia  said the indices ended with cumulative gains for the third straight week with the ASPI gaining 74.17 points (+0.85%) and the S&P  index increasing 53.12 points (+1.91%). On the activity front, turnover averaged Rs. 2.51 billion, declining from Rs. 3.16 billion last week.

First Capital Research said the bourse regressed to red ending the nine-day winning streak as investors resorted to book profits in blue chip counters. Index witnessed a slight upscale during the initial hour with perceptible interest on LIOC following the dip in global crude oil prices. 

Subsequently, the positive momentum hampered as investors reverted to a selling spree especially on JKH, SPEN and COMB and closed for the day at 8,844 losing 48 points. 

NDB Securities said ASPI closed in red as a result of price losses in counters such as Vallibel One, John Keells Holdings and Commercial Bank with the turnover crossing Rs. 1.6 billion. 

High net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Lanka IOC, Expolanka Holdings and CIC Holdings nonvoting whilst retail interest was noted in Browns Investments, SMB Leasing and Ambeon Capital. 

It added that foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 0.12%. The share price of Expolanka Holdings lost Rs. 0.25 (0.12%) to close at Rs. 203.25.

Browns Investments, CIC Holdings nonvoting and Ambeon Capital were also included among the top turnover contributors. The share price of Browns Investments moved up by Rs. 0.10 (1.25%) to close at Rs. 8.10. The share price of CIC Holdings nonvoting recorded a gain of Rs. 1.10 (1.76%) to close at Rs. 63.50. The share price of Ambeon Capital appreciated by Rs. 0.90 (10.34%) to close at Rs. 9.60.