CSE indices gain; net foreign inflow picks up

Thursday, 16 March 2023 00:54 - - {{hitsCtrl.values.hits}}

The Colombo stock market managed to ensure both indices closed on the up and higher net foreign inflow though local investor activity remained moderate.

The benchmark ASPI gained by 37 points or 0.4% and the S&P SL20 improved by over 18 points or 0.67%. Turnover was Rs. 1.6 billion involving 67 million shares.

Foreigners recorded a net inflow of Rs. 230.4 million boosting the year to date figure to Rs. 3.5 billion. Net foreign buying topped in HNB.N at Rs. 113 million whilst JKH saw net buying of Rs. 104 million and Tokyo Cement.X (Rs. 32 million) and Melstacorp (Rs. 17 million). Dialog saw net selling of Rs. 53 million.

Asia Securities said following a strong first half, the indices reversed gains at market closing on Wednesday as front-line stocks witnessed consolidation in the final hour of trading.

The ASPI opened with a gap-up of 56 points and reached a high of 9,644 (+93 points) in mid-day trading before stabilising in the range of 9,575-9,600. Notably, GLAS (+11.9%), TKYOX (+11.8%), TKYON (+8.5%), and AEL (+4.3%) stayed on an upward trend while retail stocks BIL (+6.7%) and LOFC (+6.7%) also closed with sharp gains during the session. Overall, 97 stocks ended with gains and 80 closed with losses.

Turnover was led by HNB (Rs. 262 million), JKH (Rs. 165 million), and GLAS (Rs. 92 million). Crossings accounted for 16.2% of turnover with 3 crossings recorded in HNBN (Rs. 232.4 million) and 1 crossing in JKH (Rs. 30.8 million).

First Capital said the Bourse continued to settle firmly in the green zone trading positively throughout the day on the back of active collection witnessed on banking sector counters, as HNB and COMB remained the top contributors to the ASPI.

The Index surged by 96 points in the beginning yet remained volatile afterwards as mixed sentiment was observed during the day as investors took a wait and see approach ahead of the mass protest following the trade union protest against the tax hike. Moreover, retail participation was witnessed on GLAS and TKYO as the Government decided to settle the pending due to the construction counters.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, John Keells Holdings, and Chevron Lubricants. Mixed interest was observed in PGP Glass, Tokyo Cement voting and non-voting and ACL Cables whilst retail interest was noted in Browns Investments, LOLC Finance and Dialog Axiata.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 1.02%. The share price of John Keells Holdings gained Rs. 3 to Rs. 144.

The Materials sector was the second highest contributor to the market turnover (due to PGP Glass and Tokyo Cement Company nonvoting) whilst the sector index increased by 2.78%. The share price of PGP Glass moved up by Rs. 2.30 (11.92%) to Rs. 21.60. The share price of Tokyo Cement Company nonvoting appreciated by Rs. 5 (11.85%) to Rs. 47.20.

Hatton National Bank and Browns Investments were also included among the top turnover contributors. The share price of Hatton National Bank increased by Rs. 2.75 to Rs. 134.50. The share price of Browns Investments recorded a gain of 40 cents to Rs. 6.40.

Separately Hayleys announced its interim dividend of Rs. 5.35 per share.