Stock market closes marginally up; YTD net foreign outflow tops Rs. 24 b mark

Wednesday, 12 May 2021 00:26 -     - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday managed to close marginally on the up as investor sentiment struggled amidst worsening COVID-19 situation in the country.

The All Share Price Index gained by 0.11% or 7 points and the S&PSL20 rose by 0.18% or five points on a day of fluctuations. Turnover was Rs. 1.16 billion involving 84.2 million shares.

Net foreign selling in the past two days amounted to Rs. 916 million bringing the year to date total to surpass the Rs. 24 billion mark to Rs. 24.4 billion. Net foreign selling was most at JKH at Rs. 183 million whilst Hayleys saw net foreign buying of Rs. 13.3 million. On Monday HNB non-voting saw Rs. 753.6 million of net selling.

First Capital said the Bourse reinstated its position back on the green pitch witnessing a seesaw trend in ASPI throughout the trading session. 

“Market exhibited an upslope during the first hour of trading and then indicated a gradual slide down rubbing out bulk of the intra-day gains to close at 7,143 picking up eight points,” First Capital added. 

It said Capital Goods sector dominating the contribution followed by Food, Beverage and Tobacco sector accounting for 67% of the turnover. Parcel trades represented 6% of the turnover. 

NDB Securities said the ASPI edged up as a result of price gains in counters such as Browns Investments, Asiri Hospital Holdings and Lanka Orix Finance.

It said high net worth and institutional investor participation was noted in John Keells Holdings and Hatton National Bank non-voting. Mixed interest was observed in Hayleys Fabric, Hayleys and Expolanka Holdings, whilst retail interest was noted in Royal Ceramics, Browns Investments. Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings.

The NDB rights issue was successfully concluded and the bank will raise Rs. 9.5 billion (vs. the originally planned Rs. 8 billion). Norfund will subscribe to 17% of the unsubscribed rights while making an additional investment via the proposed private placement. Post rights subscription and the private placement, Norfund will have a 9.99% stake in the bank’s ordinary voting shares. We believe this new development will remove the overhang on the stock and rerate NDB SL upwards.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics), whilst the sector index gained 0.14%. The share price of John Keells Holdings lost Rs. 0.50 (0.37%) closing at Rs. 134.75, whilst foreign holdings decreased by 1,357,595 shares. The share price of Royal Ceramics moved up by Rs. 0.50 (1.39%) to close at Rs. 36.40.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 0.22%. The share price of Browns Investments increased by Rs. 0.10 (1.54%) to close at Rs. 6.60.

Hayleys Fabric and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Hayleys Fabric recorded a gain of Rs. 1.10 (6.32%) to close at Rs. 18.50. The share price of Expolanka Holdings closed flat at Rs. 44.20.

Separately Vidullanka announced an interim dividend of Rs. 0.13 per share. Housing Development Finance Corporation and Hayleys Fabric announced their final dividends of Rs. 0.25 and Rs. 0.10 per share respectively.