CSE enjoys gainful week; net foreign buying returns

The Colombo stock market enjoyed a gainful week though dipping yesterday whilst there was welcome net foreign buying as well after persisting outflow in the past week.

On a weekly basis, the ASPI gained 430.17 points (4.88%) during the week while the S&P SL20 gained 144.14 points (5.78%). Turnover averaged Rs. 2 billion improving from Rs. 960 million last week.  

On Friday, the CSE dipped marginally though investors were active.

The ASPI declined by 0.3% and the S&P SL20 by 0.1. Turnover was Rs. 1.88 billion involving 55.37 million shares.

Asia Securities said the indices moved downwards as investors opted to cash in their gains in front-line stocks and banking sector shares after consecutive sessions of positive movement. HAYL (-1.4%), LOFC (-1.7%), HNBX (-3.1%), CICN (-1.8%), LIOC (-1.0%), DIAL (-1.0%), VONE (-3.1%), and EXPO (-1.1%) closed in red. However, SAMP (+2.0%), AEL (+1.9%), GLAS (+4.8%), SLTL (+2.8%), SCAP (+1.1%), and CICX (+1.8%) recorded price gains in an otherwise negative session. Overall, 66 stocks closed in green while 99 settled with losses.

Turnover was led by SAMP (Rs. 841 million) and JKH (Rs. 366 million). Crossings accounted for 43.2% of turnover led by 6 crossings in SAMP (Rs. 497.9 million), 7 crossings in JKH (Rs. 291.1 million) and 1 crossing in PACK (Rs. 23 million).

Asia also said foreigners recorded a net inflow of Rs. 175.8 million. Net foreign buying topped in 

JKH at Rs. 212.2 million while selling topped in CIC at Rs. 15.4 million.

First Capital said closing the week, ASPI slipped to the red zone, snapping the previous six-day rally as investors booked profits while retailers chose to be on the sidelines waiting for clarity on the DDO process. 

The Index started on a solid footing surpassing the 9,300 level, yet gradually turned around and traded in the negative zone amidst the selling pressure on VONE and index heavyweights, closing the week at 9,249. 

On the upside, investor interest persisted on selected banking counters and JKH which partly offset the loss during the day. 

Turnover dipped by 34% compared to the previous day and recorded at Rs. 1.9 billion, as no. of trades dipped to 1-week low. Hence, Institutions and high net worth investors took positions in the market through off board transactions.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Vallibel One, Hatton National Bank nonvoting and SMB Leasing nonvoting.

Mixed interest was observed in Ceylon Hospitals, Piramal Glass and Sri Lanka Telecom whilst retail interest was noted in Blue Diamonds Jewellery Worldwide, LOLC Finance and Access Engineering. Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index edged up by 0.08%. The share price of Sampath Bank increased by Rs. 1.10 to Rs. 56.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Access Engineering) whilst the sector index decreased by 0.14%. The share price of John Keells Holdings gained 75 cents to Rs. 141.25. The share price of Access Engineering moved up 30 cents to Rs. 16.10.

Ceylon Hospitals and Piramal Glass were also included among the top turnover contributors. The share price of Ceylon Hospitals recorded a loss of Rs. 14.75 (11.82%) to Rs. 110. The share price of Piramal Glass appreciated by one rupee (4.76%) to close at Rs. 22.

Separately, Melstacorp and Distilleries announced their dividends of Rs. 2.71 and Rs. 1.75 per share respectively.