High turnover, net foreign inflow at CSE but indices dip

The Colombo stock market began a fresh week on a negative note amidst high turnover and net foreign inflow of Rs. 216 million.

The active S&P SL20 declined by 0.9% and the benchmark ASPI by 0.6%. Turnover was Rs. 4.4 billion involving 169 million shares.

Asia Securities said the market started the week on a subdued note due to banks and heavyweights extending their pullback. NTBN (-6.4%), HNBX (-2.8%), SAMP (-1.0%), DFCC (-2.6%), COMBN (-1.5%), COMBX (-2.5%), SEYBN (-4.0%), and SEYBX (-4.4%) recorded price losses during the session while CFIN (-1.7%), COCR (-1.8%), PLC (-3.1%), VFIN (-3.8%), and LFIN (-1.5%) consolidated after the upward momentum seen last week. Nevertheless, CALT (+15.4%) continued its sharp upward trend followed by CFVF (+7.7%), and FCT (+4.2%). 

Sectorally, apparel stocks MGT (+5.9%) and TJL (+2.4%) saw notable investor interest during the session. Overall, 28 stocks ended higher while 114 settled with losses.

Turnover was supported by off-board transactions which accounted for 28% of turnover.

Foreigners recorded a net inflow of Rs. 216.1 million. Net foreign buying topped in DIAL at Rs. 80.9 million and selling topped in COMB.N at Rs. 18.4 million.

First Capital said the bourse displayed a negative trend throughout the day landing on the red zone for the second consecutive session closing at 11,339 losing 65 points whilst the investors chose to book profits on selected banking sector shares namely COMB, NTB and DFCC. Treasury counters and MGT witnessed revitalised interest during the day as the investors expected excellent performance aided by positive results in the forthcoming quarter; 2QFY24. Among notable transactions Wind Force (WIND) recorded four off-board transactions totalling 42.5 million shares traded at Rs. 19 each which resulted in a stake change of 3.1%.

NDB Securities said high net worth and institutional investor participation was noted in Windforce, Lankem Developments, and Melstacorp. Mixed interest was observed in Capital Alliance, Hayleys Fabric and First Capital whilst retail interest was noted in Hela Apparel Holdings, Amana Bank and SMB Leasing nonvoting.

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance and First Capital Holdings) whilst the sector index lost 0.30%. The share price of Capital Alliance gained Rs. 11.90 to Rs. 89.40. The share price of First Capital Holdings recorded a gain of Rs. 4.20 to Rs. 59.

The Utilities sector was the second highest contributor to the market turnover (due to Windforce) whilst the sector index increased by 0.93%. The share price of Windforce increased by 20 cents to Rs. 19.10.

Hayleys Fabric and Lankem Ceylon were also included amongst the top turnover contributors. The share price of Hayleys Fabric moved up by Rs. 2.50 to Rs. 44.80. The share price of Lankem Ceylon appreciated by 80 cents to Rs. 75.80.