CSE remains bearish whilst net foreign outflow tops Rs. 1 b mark

The Colombo stock market remained bearish for the fifth consecutive session whilst net foreign outflow boosted turnover yesterday.

The active S&P SL20 declined by 0.5% and the benchmark ASPI by 0.3%. Turnover was Rs. 2.7 billion involving 150.4 million.

Foreigners recorded a net outflow of Rs. 1.14 billion on account of selling in Ambeon Capital to the tune of Rs. 1.3 billion via crossing of 93.6 million shares at Rs. 13.70 each. Net foreign buying topped in Melstacorp at Rs. 90.7 million.

Asia Securities said the market extended its downward momentum for a five consecutive session as investors remained on the side-lines. AEL (+1.7%) saw increased activity from HNI and institutional investors during the session. Nevertheless, MGT (-2.0%), RICH (-2.0%), BIL (-1.6%), DIST (-1.5%), MELS (-1.1%) and LMF (-1.3%) closed with price losses. BUKI (+3 points) came in as the biggest index mover during the session while SAMP (-5 points) ended as the major laggard on the ASPI. Overall, 75 stocks closed in green while 90 settled with losses.

Apart from Ambeon Capital, turnover was also driven by AEL (Rs. 236 million) and MELS (Rs. 118 million).

First Capital said the broader market experienced a bearish sentiment as investors took a cautious approach driven by lingering uncertainties as both indices closed in the red for the 5th consecutive day. Export-oriented companies extended their positive contribution to the index for another day whereas selling activities in the banking sector continued. Significant interest for HBS was observed due to the cash and scrip dividend announcements yesterday. Subsequently ASPI closed at 12,226 losing 35 points where SAMP, MELS, RICH, JKH and COMB exaggerated negative pressure to the index. Turnover reached a one week high while recording 96.7% increase from the monthly average standing at Rs. 1.4 billion.

Consumer Durables sector led turnover at 50.8%, followed by the Capital Goods and Food and Beverage sectors jointly contributing 29.8% of overall turnover.

NDB Securities said crossings were witnessed in Ambeon Capital, Access Engineering, Richard Pieris & Company accounting for 64.1% of the turnover.

Mixed interest was observed in Dipped Products, Hayleys Fabric and Hayleys whilst retail interest was noted in Browns Investments, Renuka Agri Foods and hSenid Business Solutions.

Consumer Durables and Apparel sector was the top contributor to the market turnover (Ambeon Capital) whilst the sector index lost 0.90%. The share price of Ambeon Capital increased by 80 cents to Rs. 14.40.

The Capital Goods sector was the second highest contributor to the market turnover (Access Engineering and Hayleys) whilst the sector index decreased by 0.48%. The share price of Access Engineering gained 40 cents to Rs. 24.40. The share price of Hayleys recorded a gain of 25 cents to Rs. 103.75.

Melstacorp and Nations Trust Bank were also included amongst the top turnover contributors. The share price of Melstacorp moved down by one Rupee to Rs. 87. The share price of Nations Trust Bank declined by Rs. 1.25 to Rs. 133.