CSE dips but sees first net foreign inflow for 2023

The Colombo stock market indices dipped again with locals remaining bearish but witnessed the first net foreign inflow for the New Year 2023.

The active S&P SL20 declined by 0.7% and the benchmark ASPI by 0.56%. Turnover was Rs. 2.26 billion involving 112 million shares.

For the first time this year, foreigners recorded a net inflow of Rs. 19.4 million whereas in the first two trading days of the new year it was net selling. Net foreign buying topped in Hemas Holdings worth Rs. 40.4 million.

Selling topped in LOFC at Rs. 18.6 million.

Asia Securities said the indices closed in red largely due to price losses in EXPO (-2.5%), LOFC (-1.3%), LIOC (-3.6%), and BIL (-1.4%). Nevertheless, SCAP and AAIC continued their upward momentum closing with a gain of 2.3% and 1.5% respectively. Turnover was led by LIOC (Rs. 588 million), SCAP (Rs. 462 million), and AGST (Rs. 243 million). EXPO (-10 points) ended as the biggest laggard on the ASPI, followed by LIOC (-9 points), and MAL (-3 points). Overall, 62 stocks ended with price gains while 122 closed lower.

Crossings accounted for 20.4% of turnover with 10 crossings  recorded in LIOC (Rs. 360.5 million) and 2 crossings in AGST (Rs. 100 million).

First Capital said the Broad market skid down to red after 4-days on the back of increase in custom duties and excise duties on fuel and liquor, respectively. As a result, negative sentiment weighed on LIOC which dragged the index down as investors speculated margin pressure on the company amidst the spike in custom duty on petrol to Rs. 52 per litre from Rs. 27 per litre.

Accordingly, index pulled down and traded in the red zone throughout the session and closed the day at 8,464, losing 48 points. Despite profit taking on overall market, Treasury and Softlogic counters continued to display active collection during the day.

NDB Securities said high net worth and institutional investor participation was noted in Lanka IOC and Agstar. Mixed interest was observed in Ambeon Capital, Softlogic Life Insurance and Capital Alliance whilst retail interest was noted in Softlogic Capital, SMB Leasing nonvoting and LOLC Finance.

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index gained 0.31%. The share price of Softlogic Life Insurance recorded a gain of Rs. 1.40 (1.45%) to close at Rs. 97.90.

The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 3.23%. The share price of Lanka IOC decreased by Rs. 7.50 (3.56%) to close at Rs. 203.25.

Softlogic Capital, Agstar and Capital Alliance were also included amongst the top turnover contributors. The share price of Softlogic Capital gained 30 cents (2.33%) to close at Rs. 13.20. The share price of Agstar moved down by 30 cents (1.84%) to close at Rs. 16. The share price of Capital

Alliance appreciated by Rs. 1.10 (4.12%) to close at Rs. 27.80.

Separately Richard Pieris Exports announced a first interim cash dividend of Rs. 35 per share.