The Colombo stock market staged a welcome recovery amidst healthy turnover but foreigners stepped up selling, triggering a near Rs. 1 billion outflow.

The All Share Price Index gained by over 24 points or 0.3%, whilst the S&P SL20 improved by nine points or 0.3%. Turnover amounted to Rs. 2.9 billion involving 121.3 million shares.

Putting a halt to four days of net foreign inflow, the CSE saw Rs. 951.6 million net foreign selling yesterday, and in the process, pushing the year-to-date (YTD) figure over the 36 billion mark to Rs. 36.47 billion or over $ 180 million.

Net foreign selling amounted most at Sunshine Holdings (Rs. 790.5 million) followed by JKH (Rs. 137 million). 

In the previous four sessions, CSE saw a net foreign inflow of Rs. 93 million. 

First Capital said the bourse reversed earlier day’s losses to close with a modest gain after a choppy day of trading while recording turnover at a one-and-half-week low. 

“Index displayed a volatile trend throughout the session, reaching its intraday low at 8,064 during the early hours of trading and its intraday high at 8,102 over the latter part of session, before closing at 8,096, gaining 25 points,” First Capital added.

It said turnover was led by the Food and Beverages sector, followed by the Capital Goods and Transportation sector accounting for a joint contribution of 60%. 

Asia Securities said following a volatile start, the ASPI moved in a narrow range of 8,080-8,090 levels in the first half of the session, supported by price gains in TAP, GREG and NIFL. 

“The ASPI continued to hold onto gains as investors took cues from releases of improved quarterly earnings reported by certain companies and showed some buying interest in stocks which announced dividend payouts recently. As such, the indices ended the session returning to positive territory following yesterday’s decline, beset by travel restriction concerns,” Asia added. 

It said turnover declined, however, remained at healthy levels boosted by foreign selling in SUN via crossings. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Development Finance, Ambeon Capital and Bukit Darah.

It said high net worth and institutional investor participation was noted in Sunshine Holdings and John Keells Holdings. Mixed interest was observed in Expolanka Holdings, Ambeon Holdings and Royal Ceramics, whilst retail interest was noted in Renuka Capital, Vallibel Power Erathna and Ambeon Capital. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Sunshine Holdings), whilst the sector index edged down by 0.05%. The share price of Sunshine Holdings increased by Rs. 0.70 (2.75%), closing at Rs 26.20, whilst foreign holdings decreased by 30,171,836 shares.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index edged up by 0.09%. The share price of John Keells Holdings moved up by Rs. 0.75 (0.55%) to close at Rs. 137.25.

Expolanka Holdings, Ambeon Holdings and Renuka Capital were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 0.10 (0.12%) to close at Rs. 82.70. The share price of Ambeon Holdings recorded a gain of Rs. 3.10 (7.75%) to close at Rs. 43.10. The share price of Renuka Capital appreciated by Rs. 0.20 (2.47%) to close at Rs. 8.30.

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