Negative run persists at CSE; LION suffers Rs. 557 m net foreign selling

The Colombo stock market began a fresh week from where it finished Friday - negatively in addition to over half a billion net foreign outflow.

Both indices declined by over 0.4%. Turnover was Rs. 1 billion turnover involving 25.6 million shares.

Asia Securities said the market commenced the week on a low note with the indices moving downwards weighed by LLUB (-2.2%), CALT (-3.9%), FCT (-3.2%), MGT (-2.6%), COMBN (-1.8%), and WATA (-9.0%). LMF (+9.2%) closed sharply higher as investors continued to accumulate positions following the Company’s 1:10 sub-division announcement. COMBN (-10 points), CARG (-9 points), and LOLC (-5 points) ended as the biggest laggards for the day.

LION topped the turnover list (Rs. 558 million) with domestic investors absorbing significant foreign quantities during the session.

Foreigners recorded a net outflow of Rs. 523.1 million. Net foreign buying topped in JKH at Rs. 8.9 million and selling topped in LION at Rs. 557.1 million.

First Capital said the Bourse continued to skid lower for the fifth consecutive session as selling pressure extended across the board as investor participation continued to weaken ahead of the upcoming monetary policy review scheduled for 23 November. 

Although the index edged up in the beginning to an intraday high of 10,647, negative sentiment outweighed and dragged the index to close the day at 10,546, losing 67 points. 

Bearish sentiment was witnessed on LION following the announcement of DIST to acquire shares of Heineken Lanka Ltd., as this may intensify competition and might strengthen the market share of DIST. 

On a positive note, the bull rally extended on LMF following the share split announcement on 14 November. However, lingering selling pressure on CTC negatively contributed to the ASPI as the dividend of Rs. 36.0 per share reached the XD date. 

NDB Securities said high net worth and institutional investor participation was noted in Lion Brewery and Teejay Lanka. Mixed interest was observed in Lanka Milk Foods, Chevron Lubricants and Expolanka Holdings whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and UB Finance Company. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Lion Brewery, Lanka Milk Foods and Browns Investments) whilst the sector index lost 0.52%. The share price of Lion Brewery decreased by Rs. 42 to Rs. 898. The share price of Lanka Milk Foods gained Rs. 21 to Rs. 239.75. The share price of Browns Investments closed flat at Rs 4.90.

The Materials sector was the second highest contributor to the market turnover (due to Chevron Lubricants) whilst the sector index decreased by 1.02%. The share price of Chevron Lubricants moved down by Rs. 1.90 to Rs. 86.10.

Teejay Lanka was also included amongst the top turnover contributors. The share price of Teejay Lanka declined by 10 cents to Rs. 34.60.