Festive December propels net foreign inflow at CSE to over Rs. 30 b

The Colombo stock market continued to enjoy net foreign inflow with the festive month of December so far drawing Rs. 12.8 billion, thereby propelling the year-to-date figure to cross the Rs. 30 billion mark.

The inflow yesterday was Rs. 870 million, enhancing the YTD figure to Rs. 30.4 billion. The inflow in December is largely due to SG Holdings of Japan buying into Sri Lanka’s most valuable listed corporate Expolanka Holdings. As of last week, SG Holdings had increased its stake in Expolanka to 81% from 79.47% in September and 75.62% in June. With this week’s purchases the stake is higher.

Despite a 10-year high net foreign inflow, locals remained bearish as both indices continued their negative run. They declined by a range of 0.27% and 0.42%. Turnover was Rs. 1.98 billion involving 39.6 million shares.

Asia Securities said the indices remained in red territory for a sixth consecutive session on Thursday dragged by EXPO (-2.4%), JKH (-1.1%), AGST (-2.6%), CICN (-2.8%), and LLUB (-1.5%). Turnover was led by EXPO (Rs. 1.3 billion) and JKH (Rs. 149 million of which Rs. 145 million was foreign selling). 

Trading volume on the Exchange was recorded at 39.7 million shares, significantly lower than the five-day average of 67.8 million shares, indicating a slowdown in overall retail and HNI activity momentum ahead of the festival season.

Earlier, the ASPI declined to a low of 8,351 (-69 points) in early trading, however witnessed a gradual recovery over the course of trading to close at 8,397 (-23 points). Price gains in AAIC (+11.2%), SCAP (+8.6%), CRL (+9.6%), and SAMP (+3.6%) helped the ASPI to cushion the downside during the session. 

EXPO (-11 points), HAYL (-5 points), and SPEN (-5.0 points) were the biggest laggards for the day while SAMP (+11 points), CINS (+6 points), and MAL (+4 points) came in as the major drivers of the ASPI. The breadth of the market closed negative with 62 gainers and 97 decliners.

Crossings accounted for 50.7% of turnover with 11 crossings in EXPO (Rs. 960.5 million) and two crossings in CARGN (Rs. 47 million).

First Capital said the bourse closed in red for the sixth straight day as investor sentiment was hampered following speculations on local debt restructuring coupled with the delay in achieving the IMF Board-Level Agreement.

The Index witnessed a steep downtrend as the market opened and hit an intraday low of 8,351. Subsequently, the index began to display a gradual recovery while decrease in NCPI inflation to 65.0% in 22 November supported the positive sentiment, but the index closed lower at 8,397 losing 23 points failing to recover the losses.

NDB Securities said mixed interest was observed in John Keells Holdings, Lanka IOC and Softlogic Life Insurance whilst retail interest was noted in Browns Investments, Softlogic Capital and LOLC Finance.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 2.40%. The share price of Expolanka Holdings decreased by Rs. 4.75 (2.40%) to close at Rs. 193.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 1.16%. The share price of John Keells Holdings lost Rs. 1.50 (1.08%) to close at Rs. 138. Lanka IOC, Softlogic Life Insurance and Cargills were also included amongst the top turnover contributors. 

The share price of Lanka IOC moved up by 25 cents to close at Rs. 206. The share price of Softlogic Life Insurance recorded a gain of Rs. 6.60 (11.21%) to close at Rs. 65.50. The share price of Cargills declined by 50 cents to close at Rs. 235.