CSE rebounds but suffers net foreign outflow

The Colombo stock market bounced back yesterday thanks to improved investor sentiment though foreigners were net sellers.

The active S&P SL20 gained by 0.6% and the benchmark ASPI by 0.5%. Turnover was Rs. 853.7 million involving 37.8 million shares.

Asia Securities said the indices returned to green territory after two sessions of losses, supported by price increases in HNBN (+3.3%), HNBX (+2.4%), COMBN (+2.8%), COMBX (+3.4%), HAYL (+1.0%), CFLB (+4.0%), and SDF (+5.8%) while SAMP (-0.4%), CICN (-2.7%), ACL (-0.6%), FCT (-0.8%), CFVF (-0.9%), and LIOC (-0.6%) edged lower amidst moderate retail activity.

COMBN (+12 points) provided the biggest boost to the ASPI for the day, followed by HNBN (+11 points), and CARS (+5 points). The breadth of the market was negative with 65 price gainers and 94 decliners.

Turnover was led by HHL (Rs. 190 million), VFIN (Rs. 83 million), and JKH (Rs. 62 million).

A net foreign outflow of Rs. 282 million was recorded driven by HHL (Rs. 137 million), VFIN (Rs. 70 million), and SAMP (Rs. 49 million). Net foreign buying topped in DIST at Rs. 1.8 million.

Frist Capital said the bourse reversed to the green zone after two-days of losses in the midst of a volatile session but managed to notch a gain led by blue chips and diversified financials. Index opened positively and was see-sawed from red to green with sizable volatility but gradually moved upwards with investor interest spanning on banking counters COMB and HNB.

Accordingly, the index recouped previous losses and closed positively at 8,767 gaining 45 points. Meanwhile, market turnover displayed robust improvement as it was recorded at a week high of Rs. 853.7 million (+23% cf. monthly average turnover) dominated by the Capital Goods sector which solely accounted for a 43% contribution following the stake change of 1 million shares of HHL which took place off-board. Meanwhile, the Diversified Financials segment too contributed significantly with a contribution of 27%.