CSE dips after early rally; net foreign inflow continues

After an early rally the Colombo stock market yesterday reverted to bearish mode after Monday’s gain raising fresh concerns among investors and brokers though net foreign inflow continued.

The benchmark ASPI declined by 13 points whilst the active S&P SL20 managed to gain by 1 point. Turnover was Rs. 1 billion involving 62.4 million shares.

Asia Securities said following two sessions in green, the ASPI closed lower on Tuesday mainly due to price losses in CINS (-3.2%), DIPD (-1.6%), COMBN (-3.6%), LFIN (-1.9%), and CICN (-1.4%). The index initially touched a high of 11,952 (+60 points) in the first half of the session, however moved downwards and slipped into red territory to close at 11,879 (-13 points).

CICX (+1.5%) and VFIN (+1.2%) closed in green during the session. CINSN (-13 points), COMBN (-3 points), and BIL (-3 points) ended as the biggest laggards on the ASPI. The breadth of the market was neutral with 69 price gainers and 72 decliners.

Turnover was led by crossings in SAMP (Rs. 247 million) and PABC (Rs. 220 million) which accounted for 42.5%.

Foreigners generated a net inflow of Rs. 252 million primarily from net foreign buying in SAMP (Rs.265 million). Foreign selling topped in HAYL at Rs. 26.3 million.

First Capital said after 2 consecutive sessions in green, the Colombo bourse recorded a day of decline as index heavyweights dragged down the index during the latter half of the trading session. 

Initially showing promise with a morning surge of over 50 points, the market’s momentum faltered as investor confidence turned bearish, resulting the index to close at 11,879, losing13 points. CINS, COMB, BIL, CFIN and MELS contributed to the index negative majorly. Retail participation remained stagnant, while HNWIs maintained a positive sentiment.

SAMP stood out as the top contributor to turnover from foreign buying, accounting for 3 off-board transactions, while off-board transactions collectively made up 43.3% of the total turnover. The Banking sector contributed 52% to the turnover whilst the Capital Goods and Food, Beverage and Tobacco sectors jointly contributed 28% to the overall turnover. 

NDB Securities said mixed interest was observed in Hayleys, Melstacorp and John Keells Holdings, whilst retail interest was noted in Nation Lanka Finance, LOLC Finance and SMB Leasing.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Pan Asia Banking Corporation) whilst the sector index edged down by 0.11%. The share price of Sampath Bank increased bby60 cents to Rs. 77.80. The share price of Pan Asia Banking Corporation gained 10 cents to Rs. 21.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys and Hemas Holdings) whilst the sector index increased by 0.44%. The share price of Hayleys closed flat at Rs. 101.25. The share price of Hemas Holdings closed flat at Rs. 81.40.

Melstacorp was also included amongst the top turnover contributors with its share price declining by 40 cents to Rs. 85.