Net foreign inflow at CSE tops Rs. 13 b mark as SG Holdings picks up more Expo shares

The year-to-date net foreign inflow to the Colombo stock market crossed the Rs. 13 billion mark yesterday fuelled by continuous buying into Expolanka Holdings PLC by its parent SG Holdings of Japan.

The CSE saw a net buying of Rs. 1.8 billion yesterday of which Expo accounted for Rs. 1.7 billion. 

Of the YTD figure, Rs. 12.5 billion has been in September so far. 

The net foreign buying at CSE is after four years of outflow.

Apart from the excitement of net foreign inflow, the Colombo bourse began a fresh week on a bearish note.

Asia Securities said the market commenced the week on a low note as the indices continued to pull back due to extended profit-taking in heavyweight, banking and manufacturing sector sectors. The ASPI moved downwards till mid-afternoon trade before witnessing a brief recovery at the end of the session. 

However, the index eventually closed with a loss of 121 points (-1.2%) while the S&P SL20 index ended 46 points (-1.4%) lower. Turnover was Rs. 4,572 million (previous session Rs. 3,017 million) boosted by continued foreign buying in EXPO totalling Rs. 2,138 million.

Price losses in RICH (-4.5%), RCL (-3.5%), LOFC (-1.1%), LOLC (-2.0%) DIPD (-3.5%), CICX (-2.4%), LIOC (-1.3%), JKH (-2.1%), and ACL (-1.6%) dragged the ASPI down while price gains in EXPO (+1.2%), RAL (+9.9%), BIL (+1.3%), CFVF (+2.5%), and PACK (+3.1%) lent some support to the index during the session. 

The breadth of the market remained negative with 69 price gainers and 142 decliners.

First Capital said the market commenced the week on a negative note with profit taking visible on selected stocks as investors cut their margin positions ahead of the month end. 

Meanwhile, Retail, Capital Goods and Materials sectors majorly pulled down the index whereas Plantation and Hotel sector counters witnessed an upsurge during the day.

NDB Securities said crossings were witnessed in Expolanka Holdings, John Keells Holdings and Dialog Axiata accounting for 41.1% of the turnover. Mixed interest was observed in Lanka IOC, ACL Cables and Renuka Agri Foods whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Lanka Credit and Business Finance.

The transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 1.24%. The share price of Expolanka Holdings increased by Rs. 2.75 (1.24%) to close at Rs. 223.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and ACL Cables) whilst the sector index decreased by 2.13%. The share price of John Keells Holdings moved down by Rs. 3 (2.10%) to close at Rs. 139.75. 

The share price of ACL Cables recorded a loss of Rs. 1.75 (1.61%) to close at Rs. 107.25.

Lanka IOC and Renuka Agri Foods were also included among the top turnover contributors. The share price of Lanka IOC lost Rs. 3.75 (1.30%) to close at Rs. 284.50.

 The share price of Renuka Agri Foods appreciated by Rs. 0.70 (9.86%) to close at Rs. 7.80.