CSE ends 8-day winning streak but foreign net inflow grows

The Colombo stock market yesterday ended its 8-day winning streak as indices turned negative amidst relatively low investor activity.

The benchmark ASPI declined by 0.8% and S&P SL20 by 0.64%. Turnover was Rs. 1.96 billion involving 72.8 million shares.

Asia Securities said the ASPI fell after eight straight sessions of gains primarily because of price declines in CINS (-11.41%), JKHN (-1.75%) & bank stocks HNBN (-1.4%), COMBN (-1.0%), on the other hand, MELS (+2.5%), HAYL (+1.74%) CARG (+1.9) all experienced price increase. 

Overall, 64 stocks recorded gains, while 132 closed with losses.Turnover was driven by MELS (Ra. 223mn), JKH (Rs. 208mn), and NTBN (Rs 166mn).

Foreign inflows during the day were Rs. 390.3mn MELS (Rs 178mn), COMB (Rs 25mn), and SAMP (Rs 25mn) leading the way while outflows were headed by DFCC (Rs 17mn), and JKH (Rs 13mn) during the session. 

First Capital said the Bourse reverted to the red zone snapping the continuous 8-day winning spree and closed at 11,632 losing 92 points as investors turned to book profits following price escalations during the previous week.

Soon into the market opening ASPI dipped low as market participants resorted to profit-taking predominantly on Banking counters while the SRR cut to 2.0% further induced selling pressure, as investors anticipated a contraction in the interest rate spread with rates declining in the market. Small and mid-cap counters including MELS and HHL witnessed some interest during the day while investors also showcased interest on Utilities counters considering the possibility of additional electricity demand requirements from Renewable Energy players.

Market turnover plunged to a 2-week low with a joint contribution of 45% stemming from the Banking sector (26%) and Capital Goods sector (19%).

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Melstacorp and Nations Trust Bank. Mixed interest was observed in Hayleys Fabric, DFCC Bank and National Development Bank whilst retail interest was noted in Softlogic Capital, Amana Bank and Marawila Resorts.

The Banking sector was the top contributor to the market turnover (due to Nations Trust Bank) whilst the sector index lost 0.78%. The share price of Nations Trust Bank moved down by 50 cents to Rs 108.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.97%. The share price of John Keells Holdings lost Rs 3.50 to Rs 196.

Melstacorp, Softlogic Capital and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Melstacorp increased by Rs 2.10 to Rs 86.30. The share price of Softlogic Capital recorded a gain of 80 cents to Rs 11.70. The share price of Hayleys Fabric appreciated by 10 cents to Rs 38.50.

Separately Commercial Credit & Finance announced its dividend of One Rupee per share.