Colombo stock market sees 2024’s highest single day net foreign buying of Rs. 772 m

• CSE remains bearish despite foreign inflow to Ambeon Capital

The Colombo stock market yesterday saw the highest single day net foreign buying for the year thanks to strategic deals on Amebeon Capital, though local investor sentiment was mixed. 

The active S&P SL20 index was down by 0.94% and the benchmark ASPI was down 0.55%. Turnover was Rs. 3.2 billion involving 152.2 million shares.

Foreign investors turned net buyers, recording a net inflow of Rs. 772.1 million whereas until yesterday, the market had seen net selling of over Rs. 900 million in May. Net foreign buying topped in Ambeon Capital (TAP) at Rs. 991million.

Asia Securities said following a strong start to the session, the indices reversed course dragged by price declines in banking counters NDB (-3.7%), SAMP (-1.3%), HNBN (-2.4%), and COMBX (-1.1%). After yesterday’s downturn, the ASPI started the session on a positive note touching a high of 12,474 (+115 points) supported by NTBN (+2.3%), SPEN (+1.7%), HPWR (+10.0%), and PLC (+1.7%). However, the index pared gains, slipping into negative territory below the 12,300 mark and closed in red for a third straight session. Apart from banks, front-line stocks BIL (-1.6%), LOFC (-4.4%), VONE (-1.1%), SCAP (-4.1%), and MELS (-1.1%) saw price losses, adding downward pressure on the indices during the session. 

HNBN (-15 points), NDB (-10 points), and SAMP (-7 points) were the main laggards on the ASPI. Overall, 57 stocks closed with price gains while 120 ended in the red.

Market turnover was driven by off-board transactions (42% of turnover) led by TAP (Rs.912 million) and JKH (Rs. 284 million). 

First Capital said the market experienced another day of downturn, marking the 3rd consecutive session of bearish sentiment. Initially showing signs of recovery with a positive start, the market soon succumbed to ongoing uncertainties and profit-taking activities.

It said the ASPI experienced a downward trend, closing at 12,291, shedding 68 points (c. -0.55%). This decline was particularly influenced by the selling pressure observed on the Banking sector counters like HNB, NDB, SAMP and DFCC, as selling pressure persisted amidst lingering uncertainties, despite the recently released satisfactory results.

Turnover marked a 3.9% decrease from Tuesday, but 25.5% higher from the month’s average of Rs. 2.5 billion. Significantly, off-the-board transactions accounted for 41.9% of the turnover, indicating substantial involvement from HNWIs.

Consumer Durable sector led turnover at 32%, followed by the Banking and Capital Goods sectors jointly contributing to 39% of overall turnover. Moreover, there was notable interest observed in the Hotel sector counters. 

NDB Securities said high net worth and institutional investor participation was noted in Ambeon Capital, John Keells Holdings and Aitken Spence.

Mixed interest was observed in Browns Investments, Hemas Holdings and Nations Trust Bank whilst retail interest was noted in LOLC Finance, Marawila Resorts and Merchant Bank of Sri Lanka & Finance. Furthermore, foreigners closed as net buyers. Consumer Durables and Apparel sector was the top contributor to the market turnover whilst the sector index gained 0.26%. The share price of Ambeon Capital decreased by 10 cents to Rs. 14.30.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.46%.

The share price of John Keells Holdings lost Rs. 1.25 to Rs. 202. The share price of Hemas Holdings recorded a gain of 50 cents to Rs. 89. The share price of Aitken Spence appreciated by Rs. 2.25 to Rs. 134. Nations Trust Bank was also included amongst the top turnover contributors. The share price of Nations Trust Bank moved up by Rs. 2.75 to Rs. 12122.75.

Separately, Central Finance Company declared interim dividends of Rs. 2 per share.