Bearish run continues at CSE; foreign net selling tops Rs. 400 m

The Colombo stock market saw the bearish run continue to its third day, a development partly driven by profit taking whilst foreign net selling grew. 

The benchmark ASPI was down by 22 points or 0.18% and the active S&P SL20 was almost flat. Turnover was. Rs. 2.2 billion involving 124.3 million shares.

Asia Securities said the indices closed marginally lower as price gains JKH (+1.6%), PLR (+5.3%), HAYL (+1.8%), and BRWN (+6.2%) were offset by price losses in BIL (-1.5%), PABC (-1.3%), DIAL (-1.7%), and LOFC (-4.1%). The breadth of the market was negative with 75 price gainers and 113 decliners.

Turnover was led by BIL (Rs. 297 million), JKH (Rs. 256 million), and PABC (Rs. 160 million). Crossings accounted for 19.9% of turnover led by JKH (Rs. 184.7 million) PABC (Rs. 112.5 million) and SAMPN (Rs. 66.7 million).

Foreigners recorded a net outflow of Rs. 433.7 million. Net foreign buying topped in DIAL at Rs. 17.1 million while net foreign selling topped in JKH at Rs. 203.2 million and PABC at Rs. 113 million.

First Capital said the Colombo bourse experienced a bearish sentiment throughout the trading day, falling to an intraday low of 12,348 before closing the day at 12,354, down 22 points. Uncertainty driven profit taking was observed during the day, yet active collection was seen from retail and HNW. Top negative contributors to the ASPI were MELS, LOFC, COMB, and DIAL. Despite the subdued market activity (13.8% decrease from the month’s average of Rs. 2.6 billion), turnover experienced a marginal uptick compared to recent few days. 

Notably, BIL dominated both turnover and volumes for the day following disclosure made by the company on CSE, regarding the recent acquisitions in Kenya, Rwanda and Tanzania. The Capital Goods sector emerged as the leading contributor, constituting 23% of the turnover, followed by the Banking and Food, Beverage, and Tobacco sectors, collectively contributing 39% to the daily turnover. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Pan Asia Banking Corporation, and Sampath Bank. Mixed interest was observed in Hayleys, Dialog Axiata and Haycarb whilst retail interest was noted in Browns Investments, Prime Lands Residencies and LOLC Finance. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index gained 1.01%. The share price of John Keells Holdings gained Rs. 3.25 to Rs. 204.75. The share price of Hayleys appreciated by Rs. 1.70 to Rs. 94.80.

The Banking sector was the second highest contributor to the market turnover (due to Pan Asia Banking Corporation) whilst the sector index decreased by 0.30%. The share price of Pan Asia Banking Corporation moved down by 30 cents to Rs. 22.60.

Browns Investments and Prime Lands Residencies were also included amongst the top turnover contributors. The share price of Browns Investments decreased by 10 cents to Rs. 6.60. The share price of Prime Lands Residencies recorded a gain of 50 cents to Rs. 9.90.