Net foreign inflow at CSE but locals turn bearish

The Colombo stock market reverted negative territory yesterday though foreigners remained bullish turning to net buyers.

The active S&P SL20 was down by 0.85% and the benchmark ASPI by 0.67%. Turnover was REs. 1.55 billion involving 79.2 million shares.

Asia Securities said the indices closed in red due to price losses in heavyweights HAYL (-3.3%), HNBN (-1.1%), BIL (-1.7%), RCL (-3.0%), and LIOC (-1.8%). Price gains in WIND (+2.5%), COCO (+3.3%), and ASIR (+2.0%) provided support for the ASPI during the session. HAYL (-10 points), HNBN (-7 points), and MELS (-6 points) were the biggest laggards on the ASPI. The breadth of the market was negative with 139 price decliners and 31 gainers.

Turnover was led by crossings in WIND (Rs. 392 million), SAMP (Rs. 240 million), and JKH (Rs. 112 million). Crossings accounted for 52.1% of turnover led by WIND (Rs. 392.3 million) SAMPN (Rs. 240 million) and JKH (Rs. 112.3 million).

Asia also said foreigners recorded a net inflow of Rs. 305 million. Net foreign buying topped in WIND at Rs. 299.8 million and selling topped in LWL at Rs. 10.6 million

First Capital said the broader market failed to hold Tuesday’s gains as investors maintained a bearish sentiment, despite the positive news announced regarding the bilateral debt deal and possible completion on EDR next week.

The participation of foreign investors and HNWIs remained active while contrasting with the low participation observed among retail investors. The ASPI witnessed a lethargic day with thin trading volumes, closing the index at over a two-month low of 12,037, losing 81 points. Index heavy weights dragged down the index today whereas HAYL, HNB, MELS, JKH and RCL emerged as the top negative contributors. Meanwhile, off-board transactions accounted for 52.1% of the total turnover, with a significant transaction involving WIND, which saw a total of 19.6Mn shares traded off-board through 2 crossings at Rs. 20.0 per share, representing a 1.5% stake. Foreign investor interest in WIND remained unchanged from the previous day, while WIND contributed 26.7% to the overall turnover. The Utilities sector contributed 32.1% to the overall turnover, while Banking and Capital Goods sectors jointly contributed 43.4% to the overall turnover.