Colombo bourse remains resilient; HNWIs buy foreign selling of LOLC

The Colombo stock market showed resilience to close on the up for the third consecutive day after experiencing profit taking in early trading whilst turnover was healthy.

LOLC Holdings PLC was the centre of attraction yesterday with foreign selling of net 4.158 million shares for Rs. 480 million and locals picking up. Overall 4.46 million of LOLC Holdings shares traded for Rs. 506.3 million accounting for 38% of the turnover. It closed up Rs. 3.40 or 3% to Rs. 115.40.

Speculation was that Matthews Emerging Asia Fund was the seller and high net worth investors  Rusi Captain and Nimal Perera were on the buying side. Matthews held 11.8 million shares or 2.4% stake in LOLC Holdings as at 31 December 2019.

Acuity Stockbrokers said the bourse ended on a mixed note as the ASPI increased by 0.08% or 4.17 points to close at 4,917.54 points, while the S&P SL20 Index decreased by 0.14% or 1.98 points to close at 2,043.88.

Turnover decreased by 3.7% relative to Tuesday to amount to Rs. 1.32 billion while crossings for the day amounted to 29.7% of the day’s total turnover. 

Foreign Investors recorded a net outflow of Rs. 662.4 million over the day compared to a net outflow of Rs. 493.2 million recorded on Tuesday.

First Capital said the index was uplifted predominantly due to the price gains in LOLC and Ceylinco Insurance. 

“ASPI reached its intraday high of 4,937 within the first few minutes of trading thereafter experienced a downtrend and hit its intraday low of 4,910. However, later market recovered and closed at 4,918 gaining four points,” it said. 

“Market witnessed a high foreign participation dominated by the selling side resulting in a net outflow. Parcel trades made in the selected five counters contributed to 24% of the turnover,” First Capital added.

NDB Securities said the ASPI edged up as a result of price gains in counters such as LOLC Holdings, Ceylinco Insurance and Commercial Leasing and Finance.

High net worth and institutional investor participation was noted in LOLC Holdings, Ceylon Tobacco Company and Aitken Spence. 

Mixed interest was observed in Commercial Bank and Hatton National Bank whilst retail interest was noted in Tokyo Cement Company. Furthermore, foreigners remained active closing as net sellers. Total foreign sales accounted for 60.4% of the turnover.

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings) whilst the sector index gained 1.40%. The share price of LOLC Holdings increased by Rs. 3.40 (3.04%) to close at Rs. 115.40.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Hatton National Bank) whilst the sector index edged up by 0.10%. The share price of Commercial Bank gained Rs. 0.30 (0.46%) to close at Rs. 65.50. The share price of Hatton National Bank moved down by Rs. 1.20 (1.20%) to close at Rs. 98.60. 

John Keells Holdings and Ceylon Cold Stores were also included amongst the top turnover contributors. The share price of John Keells Holdings recorded a loss of Rs. 1.40 (1.19%) to close at Rs. 116.60. The share price of Ceylon Cold Stores closed flat at Rs. 718.00.