Foreigners step up buying boosting net inflow as locals remain wary at CSE

Foreigners stepped up their buying into Lankan listed equities yesterday amidst bearish sentiments from locals forcing indices to head south for the third consecutive day. 

Net foreign inflow grew to Rs. 454 million yesterday from Rs. 393 million on Wednesday boosting the figure for July so far to over Rs. 3.6 billion. Net foreign buying was seen most in JKH to the tune of Rs. 521 million on top of Rs. 321 million on Wednesday.

That apart, both indices declined by 0.5% whilst turnover was Rs. 1.1 billion involving 21.3 million shares.

Asia Securities said the indices closed in the red for a third session with the ASPI declining 62 points (-0.5%) and the S&P SL20 index declining 17 points (-0.5%) due to price losses in HAYL (-1.2%), SLTL (-6.6%), DIAL (-2.1%), VONE (-2.0%), NDB (-1.5%), and HAYL (-1.2%). 

MELS (-10 points), SLTL (-4 points), and NDB (-4 points) ended as the biggest laggards on the ASPI. Overall, 37 stocks ended in green while 117 settled with losses.

Crossings accounted for 38.9% of turnover led by JKH (Rs. 388 million) and HAYL (Rs. 50.5 million).

First Capital said the broader market continued to witness selling pressure as the market witnessed a subdued sentiment as index heavyweights dragged the index into the red for the 3rd consecutive day. Accordingly, ASPI halted the day at 11,768 by losing 62 points whereas MELS, SLT, COMB, NDB and HAYL emerged as the top negative contributors. Crossings took place amongst JKH and HAYL, contributing considerably to overall turnover. The Capital Goods sector led the turnover with 67%, followed by the Banking, and Diversified Financials sectors jointly contributing 15% to the overall turnover. Notably, due to the selling pressure witnessed on SLT, led the Telecommunication sector to contribute 4% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Hayleys. Mixed interest was observed in Sri Lanka Telecom, Nations Trust Bank and Lanka Tiles whilst retail interest was noted in LOLC Finance, Dialog Axiata and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Hayleys and Lanka Tiles) whilst the sector index lost 0.41%. The share price of John Keells Holdings decreased by 25 cents to Rs. 194.00. The share price of Hayleys lost Rs. 1.25 to Rs. 100.25. The share price of Lanka Tiles declined by 50 cents to Rs. 50.

The Banking sector was the second highest contributor to the market turnover (due to Nations Trust Bank) whilst the sector index decreased by 0.47%. The share price of Nations Trust Bank recorded a gain of one Rupee to Rs. 125.

Sri Lanka Telecom was also included amongst the top turnover contributors with its share price declining by Rs. 5 to Rs. 71.10.