CSE remains positive; net foreign inflow tops Rs. 1 b mark in 3 days

The Colombo stock market remained positive with a healthy activity level and continuous buying by foreigners with net inflows topping Rs. 1 billion mark in the first three market days of September.

Buying into Expolanka Holdings by parent SG Holdings persisted as the counter saw Rs. 595 million of net buying yesterday. The share price of Expolanka Holdings increased by Rs. 1.25 to close at Rs. 221.

The YTD net foreign inflow is nearing Rs. 2 billion mark with the figure as of yesterday was Rs. 1.85 billion. 

Yesterday, the indices closed higher for a fifth consecutive session boosted by price gains in LOLC (+4.6%), LOFC (+19.1%), DIAL (+5.9%), and LIOC (+2.5%), according to Asia Securities. 

It said turnover continued at Rs. 4 billion level, led by EXPO (Rs. 847 million), LOFC (Rs. 646 million), and LIOC (Rs. 574 million). 

Earlier, the ASPI opened trading with a gap-up of 84 points (+0.9%), however the index consolidated in the range of 9,350-9,380 for the rest of the session. LOLC ended as the biggest index mover, contributing 18 points, followed by LOFC (+16 points), DIAL (+7 points), and LIOC (+6 points). Overall, 97 stocks closed in green while 102 settled with losses.

First Capital said the bourse witnessed yet another day of gains as investors confidently rallied with perceptible interest on LOFC which led the market today as investors reacted positively on the news of amalgamation of LOFC with NIFL. 

Index moved on an upbeat sentiment throughout the day and remained high despite slight fluctuations as the buying spree picked up and closed for the day at 9,366 gaining 50 points. The Transportation sector and the Diversified Financials sector led the overall turnover with a joint contribution of 39%.

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings and Melstacorp. Mixed interest was observed in Lanka IOC, Agstar and CIC Holdings whilst retail interest was noted in LOLC Finance, Browns Investments and Co-Operative Insurance Company. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 0.57%. 

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Finance) whilst the sector index increased by 3.04%. The share price of LOLC Finance gained Rs. 1.70 (19.10%) to close at Rs. 10.60.

Lanka IOC, Browns Investments and Agstar were also included amongst the top turnover contributors. The share price of Lanka IOC moved up by Rs. 5 (2.53%) to close at Rs. 202.25. The share price of Browns Investments closed flat at Rs. 8.20. The share price of Agstar appreciated by Rs. 1.10 (7.28%) to close at Rs. 16.20.