Net foreign buying persists but locals keep CSE negative

The net foreign buying into the Colombo stock market persisted increasing the YTD figure to Rs. 3.5 billion but bearish locals ensured negative closure for the indices.

Foreigners recorded a net inflow of Rs. 275.4 million yesterday with net buying dominating at JKH at Rs. 171 million followed by Teejay (Rs. 75.8 million) and Aitken Spence (Rs. 11.3 million). The continuous inflow saw month to date net buying cross the Rs. 3 billion mark and the Year-to-Date increase to Rs. 3.5 billion.

Asia Securities said the indices closed lower on Thursday weighed by price declines in frontline stocks EXPO (-1.5%), CALT (-3.1%), CFVF (-2.2%), RCL (-2.5%), LOFC (-1.6%), VONE (-1.5%), and FCT (-1.3%). However, AAIC (+2.0%), MGT (+2.0%), SPEN (+1.8%), and KHL (+5.8%) saw an upward movement in prices.

Turnover remained at moderate level at Rs. 1.2 billion involving 44.5 million shares. JKH contributed most (Rs. 308 million) to turnover followed by EXPO (Rs. 102 million), and TJL (Rs. 77 million).

The ASPI declined to 8,975 (-12 points) at market open and rebounded immediately to cross 9,000 in early trade. After reaching an intra-day high of 9,002 (+15 points), the index dropped to a low of 8,957 (-30 points) and traded in a range of 8,960-8,990 for the rest of the session. Overall, 63 stocks ended higher while 97 recorded price losses during the session.

First Capital said the ASPI inched down while displaying low retail participation as investors awaited for direction on the macroeconomic front as CBSL accepted Rs. 54 billion bills from offered Rs. 100 billion as with yields remaining unchanged.

It said the Index traded on a positive note in the beginning as investor interest reactivated on Hotel sector counters on the back of soaring tourist arrivals. However, profit-taking in the Banking sector and continued sluggish activities on EXPO pulled down the index to close the day at 8,962, losing 25 points.

According to Frist Capital, off-board transactions of JAT, JKH and SIGV jointly contributed 17% to the turnover. JAT witnessed a stake change of 0.7% as Janashakthi Capital sold 3.7 million shares at Rs. 14 per share. A 9.8% stake change was witnessed in SIGV totalling to 0.9 million shares changing hands at Rs. 63.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Sigiriya Village Hotels and JAT Holdings. Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and Softlogic Capital whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Prime Lands Residencies.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged up by 0.02%. The share price of John Keells Holdings increased by 50 cents to Rs. 144.50.

The Materials sector was the second highest contributor to the market turnover (due to JAT Holdings) whilst the sector index decreased by 0.80%. The share price of JAT Holdings appreciated by Rs. 1.10 (8.21%) to Rs.14.50.

Expolanka Holdings, Teejay Lanka and Softlogic Life Insurance were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 2.75 to Rs.184.75. The share price of Teejay Lanka moved up 20 cents to Rs. 37.20. The share price of Softlogic Life Insurance rained by Rs. 2.50 to Rs. 125.25.