Foreigners persist with buying; locals wary as CSE ends week with losses

Foreigners continued with their buying mode at the Colombo stock market whilst locals were wary as the bourse ended the week on a negative note.

Asia Securities said the market ended the week on a lower note on Friday as the indices moved downwards dragged by LOLC (-1.5%), LOFC (-2.4%), BIL (-3.8%), RICH (-2.6%), and LIOC (-1.9%). Turnover stood at Rs. 2.9 billion (previous session Rs. 2.3 billion) led by EXPO (Rs. 1.1 billion), LIOC (Rs. 467 million), and AGST (Rs. 269 million). 

Foreign buying in EXPO continued during the session, resulting in a net foreign inflow of Rs. 1.0 billion (previous session Rs. 554 million). Excluding foreign buying in EXPO, market turnover amounted to Rs. 1.8 billion. Overall, 40 stocks ended in green while 131 recorded price losses.

Asia also said following three straight weeks of price gains, the indices ended with a cumulative loss this week with the ASPI declining 104.40 points (-1.18%) and the S&P SL20 losing 32.01 points (-1.13%). Market turnover averaged Rs. 2.3 billion (previous week Rs. 2.5 billion). 

First Capital said the broad market skid down on weak investor sentiment as Sri Lanka GDP contracted by 11.8% in the 3Q2022 amidst the record high inflation, shortages of essentials, inflated interest rates and shortfalls on construction activities. Although the index displayed a positive run in the beginning, as the day progressed negative sentiment outweighed the market and closed the week lower at 8,740, losing 74 points. 

In the midst of profit-taking, retail participation was observed in LIOC and LOLC group during the day. Despite a market drop, turnover improved by 25.9% to Rs. 2.9 billion compared to the previous session (+32% cf. monthly average turnover of Rs. 2.2 billion) which was largely led by the Transportation sector as significant foreign buying continued on EXPO for the 3rd straight day amounting to 4.8 million shares. AGST witnessed a stake change of 3.1% through an off-board transaction totalling to 14.2 million shares at Rs. 17.50.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Browns Investments, Vallibel One and Richard Pieris & Company.

It said mixed interest was observed in Lanka IOC, Richard Pieris & Company and First Capital Treasuries whilst retail interest was noted in Browns Investments, LOLC Finance and First Capital Holdings.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index edged up by 0.12%. The share price of Expolanka Holdings increased by Rs. 25 cents to close at Rs. 207.25.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 1.87%. The share price of Lanka IOC lost Rs. 4.50 (1.91%) to close at Rs. 231.50. 

Agstar, Richard Pieris & Company and Browns Investments were also included among the top turnover contributors. The share price of Agstar moved down by 30 cents (1.70%) to close at Rs. 17.30. The share price of Richard Pieris & Company recorded a loss of 70 cents (2.60%) to close at Rs. 26.20. The share price of Browns Investments declined by 30 cents (3.80%) to close at Rs. 7.60.