Downturn at CSE persists as YTD net foreign selling tops Rs. 1 b mark

Wednesday, 17 January 2024 00:26 - - {{hitsCtrl.values.hits}}

The Colombo bourse continued its negative run in the new week as net foreign outflow crossed the Rs. 1 billion mark in less than 15 market days of the New Year.

The active S&P SL 20 index declined by 0.8% and the benchmark ASPI by 0.6% increasing their year to date losses by 2.3% and 1% respectively.

Crossings boosted turnover to Rs. 1.6 billion involving 37.6 million shares.

More concerning was foreign net outflow crossing the Rs. 1 billion mark with Rs. 587 million of net selling yesterday.

Asia Securities said the market commenced the week on a low note with the indices moving downwards for a sixth consecutive session. Turnover reached a three-week high, on the back of off-board transactions led by CINSX and MELS.

LIOC (-1.9%), TKYON (-2.8%), FCT (-3.6%), CFVF (-2.9%), LFIN (-2.1%), and SAMP (-0.9%) closed in red while SLTL (+4.6%), AEL (+1.6%), and PARQ (+2.5%) recorded price gains in an otherwise negative session. MELS (-15 points), DFCC (-6 points), and SAMP (-5 points) came in as the biggest laggards on the ASPI during the session.

Net foreign buying topped in MELS at Rs. 209.1 million (and selling topped in CINS.X at Rs. 767.1 million.

First Capital said the bourse closed in the red for the sixth straight session, as profit taking on the banking sector counters continued for yet another day pushing ASPI to close at 10,546 recording a one and a half month low.

CALT saw a significant increase in trading today following its dividend announcement of Rs. 6 per share.

NDB Securities said crossings were witnessed in Ceylinco Insurance nonvoting, Melstacorp and Hemas Holdings, accounting for 58% of the turnover. Mixed interest was observed in Capital Alliance, Lanka IOC and John Keells Holdings whilst retail interest was noted in Browns Investments, Marawila Resorts and Industrial Asphalts.

The Insurance sector was the top contributor to the market turnover (due to Ceylinco Insurance nonvoting) whilst the sector index lost 0.55%. The share price of Ceylinco Insurance nonvoting decreased by Rs. 20 to Rs. 800.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index decreased by 0.81%. The share price of Melstacorp lost Rs. 3.20 to Rs. 85.

Capital Alliance, Hemas Holdings and Lanka IOC were also included among the top turnover contributors. The share price of Capital Alliance moved down by 40 cents to Rs. 53.20. The share price of Hemas Holdings recorded a gain of 40 cents to Rs. 69. The share price of Lanka IOC declined by Rs. 2 to Rs. 101.