Positive start for week, net foreign inflow at CSE

The Colombo stock market began a fresh week on a positive note and net foreign inflow.

The active S&P SL20 gained by 0.68% and the benchmark ASPI by 0.18%. Turnover was Rs. 1.36 billion involving 45.2 million shares.

Yesterday’s gain was a relief for investors as it implied sentiments have improved with the market last Thursday ending the five-day losing streak.

Asia Securities said the ASPI commenced the session on an upbeat note driven by positive news regarding Sri Lanka’s progress toward exiting bankruptcy status. Building upon this, the ASPI touched an intra-day high of 12,321 (+72 points) in early trading, however pared gains over the course of the session due to price losses in LMF (-1.6%), DIPD (-2.0%), DIAL (-1.0%), and AEL (-1.2%).

JKH (+2.2%), PLC (+4.0%), MGT (+1.7%), HAYC (+1.3%), and HNBN (+2.0%) supported the ASPI during the session. The index eventually closed out at 12,272 (+22 points). JKH (+15 points) contributed the most to the ASPI followed by HNB (+12 points) while CTC (-11 points) came in as the biggest laggard on the index.

Notably, JKH saw foreign buying for a second session, resulting in a net inflow of Rs. 149 million in the stock. Net foreign selling topped in COMB.N at Rs. 33.5 million.

Turnover was led by JKH (Rs. 210 million), PLC (Rs. 91 million), and HAYL (Rs. 89 million).

First Capital said the broader market experienced a mixed sentiment as investors adopted a wait and see approach ahead of the possible debt restructuring confirmation scheduled for 26 June.

It said the ASPI commenced the week on a positive note, reaching its intraday high of 12,323 during the first trading hour. However, the banking sector counters exerted selling pressure on the index, resulting in a modest gain as the index closed at 12,272, gaining 22 points. Several blue-chip companies and manufacturing sector stocks gained momentum throughout the day further demonstrating a buying interest towards different sectors.

Turnover was a two-week low and 8.7% down from the month’s daily average of Rs. 1.5 billion where the Capital Goods sector led the turnover at 29.9%, followed by Banking and Food and Beverage sectors jointly contributing 36.4% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation were noted in People’s Leasing and Finance, Melstacorp and Distilleries. Mixed interest was observed in John Keells Holdings, Hayleys and Nations Trust Bank whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (John Keells Holdings and Hayleys) whilst the sector index gained 1.30%. The share price of John Keells Holdings increased by Rs. 4.50 to Rs. 206.50. The share price of Hayleys moved up 75 cents to Rs. 105.75.

The Banking sector was the second highest contributor to the market turnover (Nations Trust Bank) whilst the sector index increased by 0.75%. The share price of Nations Trust Bank recorded a gain of Rs. 1.25 to Rs. 135.

People’s Leasing and Finance and Hayleys Fabric were also included among the top turnover contributors. The share price of People’s Leasing and Finance gained 50 cents to Rs. 12.90. The share price of Hayleys Fabric appreciated by 80 cents to Rs. 47.40.