Bourse sees billion by the days, albeit, outflow

• In July so far, net foreign selling amounts to Rs. 3.46 b; YTD almost Rs. 30 b
• Surpassing of Rs. 26 to Rs. 29 b threshold happened within 5 market days

For the Colombo bourse, the exit of billions to overseas appears to be happening faster. 

Having crossed the year-to-date (YTD) net foreign outflow milestones of Rs. 27 billion, Rs. 28 billion and Rs. 29 billion within five market days, the Rs. 30 billion figure is looming.

The Colombo stock market saw net foreign selling of Rs. 583.5 million yesterday, bringing the month-to-date figure to Rs. 3.46 billion and the YTD amount to Rs. 29.9 billion. Yesterday, foreign selling was most seen in Lanka Milk Foods (Rs. 327.5 million) and The Kandy Hotels Company (Rs. 216 million).

Previously, the crossing of an additional billion rupees each came in quick succession with YTD figure of Rs. 27 billion recorded on 6 July and Rs. 28 billion surpassed on 9 July.

The sustained net foreign selling remains the dark cloud over the Colombo bourse though proponents of capital market take strength from the fact that locals have had the confidence and optimism to absorb that amount in buying what foreigners selling. 

Continuing the positive run, the All Share Price Index gained by 26 points or 0.33% and the S&P SL20 improved by 10 points or 0.33%. Turnover yesterday was Rs. 2 billion involving 126.6 million shares.

First Capital said the bourse successfully retained its foothold in the green territory for the sixth consecutive day despite the ASPI experiencing a volatile bumpy recovery during the first hour of trading, before ramping up over the second half of the session, gaining 26 points while closing at 7,939. 

It said turnover was led by the Food, Beverage and Tobacco sector, followed by the Consumer Services sector, collectively accounting for a joint contribution of 49%. 

Asia Securities said the ASPI commenced trading with a gap-up opening of 20 points before declining to a low of 7,905 level, dragged by price losses in NIFL. Following this, the index picked up 34 points, supported by price gains in BIL, EXPO and LOLC and closed the session reaching a five-month high. The hotels and resorts counters witnessed price gains during the session while large crossings in LMF and KHC boosted turnover. 

Asia said the Food, Beverage and Tobacco, Consumer Services, Diversified Financials and Materials sectors led activity, collectively accounting for 73.3% of turnover. 

It said foreigners recorded a net outflow of Rs. 583.5 million while their participation increased to 16.2% of turnover (previous day 6.7%). Estimated net foreign buying topped in BIL.N at Rs. 26.3 million and net foreign selling topped in LMF.N at Rs. 327.5 million. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Browns Investments, John Keells Holdings and LOLC Holdings.

It said high net worth and institutional investor participation was noted in Lanka Milk Foods and Kandy Hotels Company. Mixed interest was observed in Expolanka Holdings, Browns Investments and LOLC Holdings, whilst retail interest was noted in Beruwala Resorts, Eden Hotel Lanka and Waskaduwa Beach Resort. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Lanka Milk Foods and Browns Investments), whilst the sector index gained 0.38%. The share price of Lanka Milk Foods increased by Rs. 2.75 (1.71%) closing at Rs. 163.75, whilst foreign holdings decreased by 2,000,000 shares. The share price of Browns Investments recorded a gain of Rs. 0.20 (3.28%) to close at Rs. 6.30.

The Consumer Services sector was the second highest contributor to the market turnover (due to Kandy Hotels Company), whilst the sector index increased by 3.14%. The share price of Kandy Hotels Company gained Rs. 1. (19.61%) closing at Rs. 6.10, whilst foreign holdings decreased by 36,585,097 shares.

Expolanka Holdings and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 0.20 (0.38%) to close at Rs. 52.90. The share price of LOLC Holdings appreciated by Rs. 3.50 (0.84%) to close at Rs. 418.25.