Locals remain negative at CSE but foreigners bullish with YTD net inflow topping Rs. 17 b

The Colombo stock market continued heading south amidst lacklustre local interest whilst foreign investors stepped up buying thereby boosting Year to Date net inflow to over 

Rs. 17 billion. 

The benchmark ASPI dipped by nearly 25% and the active S&P SL20 declined by 1.7%. Turnover was Rs. 2 billion involving 69 million shares.

Net foreign buying crossed Rs. 500 million boosting the year-to-date figure to Rs. 17.4 billion.

Asia Securities said the indices closed in red for a third consecutive session dragged by LIOC (-7.8%), SAMP (-2.5%), RCL (-5.2%), LOLC (-2.1%), and CICX (-10.0%). 

The ASPI recorded a loss of 169 points to close at 8,516, its lowest level in two months and the S&P SL20 index declined by 44 points to end at 2,554. 

Turnover was led by JKH (Rs. 423 million), LIOC (Rs. 368 million), and EXPO (Rs. 296 million). 

Foreigners continued to be on the buying side, generating Rs. 529 million boosted by JKH (Rs. 376 million), MELS (Rs. 44 million), and RICH (Rs. 35 million). The breadth of the market ended negative with 39 price gainers and 156 decliners.

First Capital said the market commenced the holiday shortened week on a negative note while ASPI deteriorated further, as retailers realised profits on LIOC, after the company reported a profit of Rs. 12.4 billion for 2QFY23 in-line with the investor expectations. 

Though the index traded on a positive note in the beginning, eventually plummeted steeply as selling pressure mounted with retailers choosing to cut down the equity exposure as several tax reforms were introduced during the weekend and investors expecting further clarity on the matter in the upcoming budget. 

Turnover was dominated by Capital Goods and Energy sectors which accounted for a joint contribution of 47%.

NDB Securities said high net worth and institutional investor participation was noted in Kahawatte Plantations and CIC Holdings (voting and nonvoting). Mixed interest was observed in John Keells Holdings, Lanka IOC and Expolanka Holdings whilst retail interest was noted in Industrial Asphalts, Browns Investments and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 1.50%. The share price of John Keells Holdings closed flat at Rs 129.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 7.19%. The share price of Lanka IOC lost Rs. 15 (7.82%) to close at Rs. 176.75.

Expolanka Holdings, CIC Holdings nonvoting and Kahawatte Plantations were also included amongst the top turnover contributors. The share price of Expolanka Holdings closed flat at Rs. 148.75. The share price of CIC Holdings nonvoting recorded a loss of Rs. 7.20 (10.03%) to close at Rs. 64.60. The share price of Kahawatte Plantations appreciated by Rs. 2.20 (6.88%) to close at Rs. 34.20.