Stock market manages to rebound but YTD net foreign outflow tops Rs. 22 b

The Colombo stock market yesterday managed a welcome yet a modest recovery though turnover fell below the Rs. 1 billion mark after many weeks whilst foreigners continued to be net sellers with year to date figure topping Rs. 22 billion.  

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 0.41% or 20.89 points to close at 5,090.41 points, while the S&P SL20 Index also increased by 0.45% or 9.98 points to close at 2,205.66.

Turnover decreased by 3.4% relative to Wednesday to Rs. 0.9 billion while crossings for the day amounted to 19.4% of the day’s total turnover. 

Foreign Investors meanwhile, recorded a net outflow of Rs. 0.18 billion over the day compared to a net outflow of Rs. 0.21 billion on Wednesday.

First Capital said market converted back to its positive sentiment reversing the impact seen on Wednesday while turnover recorded below Rs. 1 billion breaking the trend witnessed for a month. 

“Index experienced an uptrend since the beginning of the session due to the buying interest in the LOLC and JKH and reached its intraday high of 5,098. Market closed at 5,090 gaining 21 points while the upside potential was limited by the selling pressure in CTC,” First Capital said. 

It said parcel trades made in HHL, CARG and JKH contributed 19% of turnover. 

Market witnessed a net foreign outflow while recording moderate participation. According to First Capital, year to date net foreign outflow was Rs. 22.1 billion.NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, John Keells Holdings and Ceylon Cold Stores.

High net worth and institutional investor participation was noted in Dialog Axiata, Hemas Holdings, LOLC Holdings and Cargills. Mixed interest was observed in Commercial Bank whilst retail interest was noted in Asia Asset Finance. 

Furthermore, foreigners closed as net sellers mainly due to foreign selling in Hemas Holdings.

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings) whilst the sector index gained 1.85%. The share price of LOLC Holdings increased by Rs. 5.80 (4.83%) to close at Rs. 125.90.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank) whilst the sector index increased by 0.49%. The share price of Commercial Bank closed flat at Rs. 76.60. Hemas Holdings, John Keells Holdings and Cargills were also included amongst the top turnover contributors.

The share price of Hemas Holdings gained Rs. 1.40 (2.35%) closing at Rs. 61.00 whilst foreign holdings decreased by 1,468,206 shares. The share price of John Keells Holdings moved up by Rs. 1.00 (0.88%) to close at Rs. 114.00. The share price of Cargills closed flat at Rs. 182.90.