Colombo stock market dip persists; foreigners step up buying

The Colombo stock market’s dip persisted yesterday whilst foreigners stepped up their buying bringing in valuable inflows. 

Both stock indices declined by 0.8% and turnover was only Rs. 791 million involving 43 million shares. 

Foreigners recorded a net inflow of Rs. 181.4 million while their participation in terms of turnover picked up to 12.6% of turnover (previous day 2.1%). Net foreign buying topped in HNB.N at Rs. 1,290 million while net foreign selling topped in HAYC at Rs. 2.6 million. It was the fourth straight day of net foreign buying increasing the inflow so far in July to Rs.251.6 million.

Asia Securities said yesterday the indices extended decline for the fourth consecutive session due to price losses in SAMP (-3.3%), VONE (-2.2%), LOLC (-1.0%), JKH (-0.8%), and LIOC (-0.8%). 

Turnover was led by HNB (Rs. 142 million), LIOC (Rs. 125 million), and EXPO (Rs. 110 million). 

Asia said continuing its downward trend, the ASPI commenced the session on a tepid note and reached a low of 7,058 (-59 points). However, the index saw a bout of recovery and moved briefly in positive territory in mid-session trading. After touching an intra-day high of 7,129 (+12 points), the ASPI reversed course and remained negative for the rest of the session to close at 7,058 (-59 points). The breadth of the market continued weak with 54 price gainers and 120 decliners.

First Capital said the bourse recorded losses for the fourth straight session with investors taking a defensive approach following the policy rate hike by CBSL. Index witnessed sizable volatility during the session with mixed activities while during the latter period comments from the central bank governor on possible increase of inflation +70% hampered market sentiment. 

As the majority of the banking sector counters started to plunge amidst the monetary policy tightening, the index witnessed a gradual decline and closed for the day at 7,058, losing 59 points. Turnover of Rs. 791.5 million was below the weekly average of Rs. 1,084.7 million while Capital Goods and Banking sectors accounted for a joint contribution of 44%. 

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Richard Pieris and Company and John Keells Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and ACL Cables, whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and LOLC Finance. 

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings), whilst the sector index lost 0.61%. The share price of John Keells Holdings recorded a loss of one rupee (0.81%) to close at Rs. 122.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank), whilst the sector index decreased by 1.32%. The share price of Hatton National Bank decreased by Rs. 1.60 (2.01%) to close at Rs. 78.

Lanka IOC, Expolanka Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of Lanka IOC lost 60 cents (0.80%) to close at Rs. 74.20. The share price of Expolanka Holdings moved up by Rs. 1.50 (0.95%) to close at Rs. 159.75. The share price of Browns Investments declined by 20 cents (3.08%) to close at Rs. 6.30.