Colombo stock market falls to 4-month low but foreign net inflow for month tops Rs. 600 m

The bearish run at the Colombo stock market continued with the benchmark index dropping to four month low yesterday amidst lacklustre investor interest.

The All Share Price Index (ASPI) was down by 47 points or 0.4% but that was enough to force it languish to the lowest level since 14 July. The active S&P SL20 was down by 0.4% too. Despite the dip, year to date, ASPI is up 23.4% and S&P SL20 by 12.7%.

Turnover yesterday was Rs. 579 million involving 20 million shares. The market also saw net foreign inflow.

Asia Securities said the market sustained its recent subdued momentum as investors adopted a “wait-and-see” approach, closely monitoring the movements of the ASPI. The broader index concluded the session at 10,480 (-47 points), slipping below the 10,500 level, marking its lowest point since 14 July 2023. The ASPI faced downward pressure due to price declines in HNBN (-1.5%), LIOC (-1.0%), SLTL (-2.2%), SCAP (-1.2%), FCT (-1.2%), and DFCC (-1.7%). Overall, 59 counters ended in green while 108 settled with losses.

Turnover was led by SAMP (Rs. 132 million) and MELS (Rs. 87 million).

Foreigners recorded a net inflow of Rs. 54.3 million. Net foreign buying topped in SAMP.N at Rs. 35.5 million and selling topped in HNB.N at Rs. 6.7 million.

First Capital said the bourse witnessed a downturn, concluding the day at a 4 ½ month low of 10,480, experiencing a decline of 47 points.

“This shift was attributed to investors adopting a cautious stance while awaiting clarity on the debt restructuring process, expressing concerns about the second tranche of the IMF EFF, which overshadowed the positive implications of the 2024 budget proposal,” First Capital said.

On a positive note, the hotel sector garnered slight investor interest, with tourist arrivals surpassing 100,000 in the initial 23 days of November, with both the Tourism Ministry and the SLTDA expressing confidence in surpassing this year’s tourist arrival target of 1.55 million.

Foreign investors sustained their role as net buyers for the fourth consecutive session, exhibiting moderate participation, whilst MTD net foreign inflow stood at Rs. 609.8 million.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Sampath Bank, and The Colombo Fort Land and Building. Mixed interest was observed in Expolanka Holdings, Hatton National Bank and Commercial Bank whilst retail interest was noted in Prime Lands Residencies, Capital Alliance and First Capital Holdings.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Hatton National Bank) whilst the sector index lost 0.50%. The share price of Sampath Bank decreased by 10 cents to Rs. 67. The share price of Hatton National Bank recorded a loss of Rs. 2.50 to Rs. 165.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index edged up by 0.06%. The share price of Melstacorp gained 30 cents to Rs. 77.50.

Expolanka Holdings and The Colombo Fort Land and Building were also included amongst the top turnover contributors. The share price of Expolanka Holdings closed flat at Rs. 129. The share price of The Colombo Fort Land and Building appreciated by 50 cents to Rs. 27.50.