CSE suffers Rs. 3 b in net foreign selling in 17 days; YTD now over Rs. 29 b

The net foreign selling at the Colombo bourse appears to have gathered pace with Rs. 3 billion gone within just 17 market days. 

The year-to-date (YTD) net foreign outflow stood at Rs. 26 billion on 17 June and by yesterday it had surpassed the Rs. 29 billion mark. 

Yesterday’s net foreign selling was Rs. 651 million on top of Rs. 783 million on Friday. The crossing of an additional billion rupees each has come in quick succession with YTD figure of Rs. 27 billion crossed on 6 July and Rs. 28 billion surpassed on 9 July.  

Apart from the soaring foreign outflow, the Colombo stock market remained positive. The All Share Price Index gained by 14 points, or 0.18%, and the S&P SL20 Index improved by nine points, or 0.3%. Turnover was Rs. 2.26 billion involving 121 million shares.

First Capital said the bourse started off the week on a positive note, sustaining the bullish run for a fourth consecutive day while recording an index high of two weeks. 

“Following a short-lived dip in the first 18 minutes of trading at 7,850, the ASPI resumed to a stair-step uptrend for the remainder of the day, closing at 7,866,” First Capital said. 

It said turnover was led by the Transportation sector and Capital Goods sector, closely followed by the Diversified Financials sector, collectively accounting for a contribution of 46%.  Parcel trades accounted for 23% of turnover. 

Asia Securities said the indices commenced the week on a positive note trending upwards on the back of price gains in EXPO, PLC and MGT, and closed in green territory for the fourth consecutive session. 

Foreign selling through crossings were absorbed by institutional and HNI investors while overall activity remained at healthy levels.

Asia said Transportation, Capital Goods, Diversified Financials and Materials sectors led activity, collectively accounting for 58.9% of turnover. 

Foreigners recorded a net outflow Rs. 651 million while their participation increased to 17.7% of turnover (previous day 15.8%). Estimated net foreign buying topped in LWL.N Rs. 14.6 million and net foreign selling topped in PLC.N at Rs. 238 million.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Vallibel One and Ceylinco Insurance.

It said high net worth and institutional investor participation was noted in People's Leasing & Finance, Hatton National Bank and Alumex. Mixed interest was observed in CT Holdings, Aitken Spence and Expolanka Holdings, whilst retail interest was noted in SMB Leasing voting and non-voting and Hayleys Fabric. Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in People's Leasing & Finance.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 2.93%. The share price of Expolanka Holdings increased by Rs. 1.50 (2.95%) to close at Rs. 52.40.

The Capital Goods sector was the second highest contributor to the market turnover, whilst the sector index increased by 0.76%.

People's Leasing & Finance, Hayleys Fabric, Hatton National Bank and Ceylon Tobacco Company were also included amongst the top turnover contributors. The share price of People's Leasing & Finance gained Rs. 0.20 (1.56%) closing at Rs. 13.00, whilst foreign holdings decreased by 18,314,284 shares. The share price of Hayleys Fabric moved up by Rs. 1.50 (7.35%) to close at Rs. 21.90. The share price of Hatton National Bank recorded a gain of Rs. 0.75 (0.57%) to close at Rs. 133. The share price of Ceylon Tobacco Company appreciated by Rs. 9 (0.94%) to close at Rs. 970.