Higher turnover but indices mixed at CSE; net foreign inflow persists

The Colombo stock market saw higher turnover but indices closed on a mixed note whilst foreigners continued to be net buyers. 

The All-Share Price Index was up 0.5% but the S&P SL20 dipped by 0.13%. Turnover was Rs. 1.8 billion involving 75.7 million shares. 

Following a 95-point gap-up opening at 7,826, the ASPI moved downwards due to price declines in heavyweight stocks EXPO (-4.1%), AAIC (-3.5%), LFIN (-6.1%), LOLC (-2.6%), DIAL (-1.1%) and HHL (-1.5%). However, the index managed to close in positive territory with a gain of 37 points (+0.5%) supported by Hayleys group stocks HAYL (+7.5%), DIPD (+12.7%), LOFC (+4.5%), HAYC (+7.1%) and HEXP (+6.1%). On the other hand, the S&P SL20 index edged three points (-0.1%) lower. 

Retail and HNI activity improved significantly during the session with turnover reaching a two-month high at Rs. 1,818 million (previous session Rs. 1,594 million) led by LIOC (Rs. 421 million), EXPO (Rs. 286 million), DIPD (Rs. 128 million) and BIL (Rs. 100 million). HAYL provided the biggest boost to the ASPI, contributing 15 points, followed by DIPD (+10 points) and SPEN (+5 points). The breadth of the market remained positive with 97 gainers and 68 decliners.

Foreigners recorded a net inflow of Rs. 17.1 million while their participation was at 1.9% of turnover (previous day 1.7%). Net foreign buying topped in RICH at Rs. 19.2 million while selling topped in ASIY at Rs. 5.4 million.

First Capital said the Bourse extended the bull rally for the third straight session with strengthened investor sentiment over the country›s economic and political environment with possible indications on an All-Party Government while the President revealed he expects an IMF staff level agreement by end of August. 

Index climbed up upon market opening as investors displayed buying interest typically in the plantation sector and HAYL. However, anticipated fuel price revisions brought in some profit taking in LIOC amidst the buying spree before the index closed in the green at 7,769 gaining 37 points. Turnover was fuelled by improved retail participation and recorded at Rs. 1.8 billion (+77% cf. monthly average turnover of Rs. 1 billion) while Energy sector and Food, Beverage and Tobacco sector jointly contributed 45% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Dipped Products whilst

retail interest was noted in Browns Investments, Asia Siyaka Commodities and LOLC Finance. 

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index lost 0.67%. The share price of Lanka IOC decreased by 80 cents (0.89%) to close at Rs. 89.30.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 0.79%. The share price of Browns Investments closed flat at Rs. 7.

Expolanka Holdings, Dipped Products and John Keells Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 7.25 (4.14%) to close at Rs. 168. The share price of Dipped Products moved up by Rs. 4.20 (12.73%) to close at Rs. 37.20. The share price of John Keells Holdings declined by 75 cents (0.62%) to close at Rs. 119.75.