Net foreign outflow tops Rs. 21 b as CSE remains bearish

Friday, 3 July 2020 00:00 - - {{hitsCtrl.values.hits}}

Net foreign outflow topped the Rs. 21 billion mark yesterday as the Colombo stock market continued to be bearish despite improved turnover.

Acuity Stockbrokers said the bourse ended on a negative today as the ASPI decreased by 0.76% or 39.37 points to close at 5,109.04 points, while the S&P SL20 Index also decreased by 1.30% or 29.40 points to close at 2,229.32.

Turnover increased by 42.7% relative to Wednesday to Rs. 1.56 billion while crossings for the day amounted to 19.3% of the day’s total turnover.

First Capital said the bourse ended in the negative territory for the fourth consecutive session, recording the largest intraday drop after a month.

“The index experienced a downward movement since the beginning and hit its intraday low of 5,087 within the first hour of trading. Later the market recovered and witnessed a stagnant movement and closed at 5,109 losing 39 points,” First Capital said. It added that the ASPI was dragged down predominantly due to the dip in prices of John Keells Holdings and Ceylon Tobacco.

“Parcel trades made in HNB and COMB boosted the turnover for the session contributing 19% of the total,” First Capital added.

NDB Securities said indices closed in red as a result of price losses in counters such as John Keells Holdings, Ceylon Tobacco Company and Dialog Axiata.

Largely on account of JKH, foreign net selling amounted to Rs. 310 million, bringing the year-to-date figure to Rs. 21.2 billion. Last two days net outflow was Rs. 555 million. JKH saw net selling worth Rs. 418 million yesterday. Total foreign sales accounted for 45.2% of the turnover yesterday.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Hatton National Bank and Commercial Bank.

Mixed interest was observed in Tokyo Cement Company non-voting, Sampath Bank and Janashakthi Insurance Company, whilst retail interest was noted in Access Engineering and First Capital Holdings. The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank and Sampath Bank), whilst the sector index lost 1.36%.

The share price of Hatton National Bank lost Rs. 1.70 (1.50%) to close at Rs. 111.30 while the share price of Commercial Bank moved down by Rs. 0.90 (1.15%) to close at Rs. 77.10. Furthermore, the share price of Sampath Bank recorded a loss of Rs. 1.20 (0.95%) to close at Rs. 125.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index decreased by 1.38%. The share price of John Keells Holdings decreased by Rs. 2 (1.65%) closing at Rs. 119.40 whilst foreign holdings decreased by 3,499,579 shares.

Tokyo Cement Company non-voting was also included amongst the top turnover contributors. The share price of Tokyo Cement Company nonvoting declined by Rs. 0.50 (1.66%) to close at Rs. 29.60.