Strong rebound in local investor sentiment and activity at CSE

Saturday, 10 July 2021 00:29 -     - {{hitsCtrl.values.hits}}

  • Year to date net foreign outflow tops Rs. 28 b mark

The Colombo stock market yesterday displayed a rebound in investor sentiment and activity as both indices shot up amidst new high turnover. 

The All Share Price Index gained by over 40 points or 0.5% whilst the S&PSL20 improved by 23 points or 0.78%. Turnover moved back to above-average level at Rs. 3.4 billion involving a high 447 million shares on account of a strategic acquisition (See box).

But the deal involving Panasian Power also resulted in net foreign selling rising to Rs. 780 million thereby pushing the year to date figure to over Rs. 28 billion.

First Capital said the Bourse concluded the week sustaining the bullish sentiment while recording turnover at a 3-week high.

“ASPI continued on an upward drive throughout the session with a marginal dip towards the end of the session to close at 7,852 gaining 41 points,” First Capital added.

It said turnover was powered by the Utilities sector generating a sole contribution of 50%. Parcel trades produced a significant contribution of 58% for the turnover. 

Asia Securities said the market ended the week displaying positive momentum as both the indices trended upwards throughout the session, supported by price gains in CLC, LOLC and EXPO. 

Acquisition of Panasian Power PLC by RIL Property PLC through crossings pushed the stock to the top in turnover (49% of turnover).

Asia said foreigners recorded a net outflow of Rs. 783.3 million while their participation declined to 15.8% of turnover (previous day 28.3%). Estimated net foreign buying topped in EXPO.N at Rs. 57.7 million net foreign selling topped in PAP.N at Rs. 512.6 million.

“The ASPI gained 105.63 points (+1.36%) during the week while the S&P SL20 gained 8.26 points (+0.28%),” Asia Securities added. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Commercial Leasing & Finance, LOLC Holdings and Expolanka Holdings.

Crossings were witnessed in Panasian Power (61.68% of Panasian Power shares changed hands via crossings, with RIL acquiring the controlling stake), Hatton National Bank and Teejay Lanka, accounting for 58.3% of the turnover. Mixed interest was observed in Hatton National Bank nonvoting, Expolanka Holdings and LOLC Holdings, whilst retail interest was noted in Browns Investments, Hayleys Fabric and R I L Property. Furthermore, foreigners closed as net sellers mainly due to foreign selling in Panasian Power and Hatton National Bank.

NDB said Utilities sector was the top contributor to the market turnover (due to Panasian Power), whilst the sector index gained 0.34%. The share price of Panasian Power decreased by Rs. 0.10 (2.38%) closing at Rs. 4.10, whilst foreign holdings decreased by 125,015,000 shares.

The Banking sector was the second-highest contributor to the market turnover (due to Hatton National Bank), whilst the sector index increased by 0.56%. The share price of Hatton National Bank gained Rs. 1.25 (0.95%) closing at Rs. 132.25, whilst foreign holdings decreased by 2,280,000 shares.

Expolanka Holdings, LOLC Holdings and Teejay Lanka were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 1.10 (2.21%) to close at Rs. 50.90. The share price of LOLC Holdings recorded a gain of Rs. 5.25 (1.30%) to close at Rs. 410.25. The share price of Teejay Lanka appreciated by Rs. 1.50 (3.90%) to close at Rs. 40.


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