Net foreign inflow at CSE tops Rs. 3 b mark in July but locals bearish

The month-to-date net foreign inflow crossed the Rs. 3 billion mark yesterday at the Colombo stock market whilst locals remain bearish worrying brokers and analysts.

The CSE saw net foreign inflow of Rs. 393 million yesterday boosting the figure so far in July to Rs. 3.1 billion. Net foreign buying topped in JKH at Rs. 321.1 million.

This was the only silver lining yesterday as the indices declined for the third consecutive session. The benchmark ASPI declined by 0.4% and the active S&P SL20 by 0.5%. Turnover was Rs. 1.23 billion involving 24 million shares.

Asia Securities said indices closed in red dragged by LOFC (-1.6%), BIL (-1.8%), DIAL (-1.1%), COMBN (-0.8%), and JKH (-0.6%). GLAS (+1.0%) and TJL (+1.3%) closed in green during the session. MELS (+4.8 points) came in as the major positive contributor to the ASPI while COMBN (-6 points), SPEN (-5 points), and JKH (-4 points) ended as the biggest laggards on the index. Overall, 53 stocks ended in green while 82 settled with losses.

Crossings accounted for 66.8% of turnover led by JKH (Rs. 582 million), HHL (Rs. 124.1 million) and HAYL (Rs. 121.9 million).

First Capital said the bourse continued its course in a negative direction amidst low investor sentiment. The market saw increased sentiment at the beginning of the day, while experiencing a decline in momentum over the course of the day. The ASPI closed at 11,830, marking a 0.41% decrease from the previous day, to which the most significant contributors were COMB, SPEN, JKH, RICH, and CTC. Conversely, MELS, SEMB, TJL, CARS, and TKYO were the most significant positive contributors towards ASPI. The Capital Goods sector led turnover by an immense amount at 77.1%, followed by the Materials, and Diversified Financials sectors jointly contributing 8.2% to overall turnover, further exhibiting volatility within the market. The Banking sector saw a decline in its contributions to turnover, accounting for only 2.9% of overall turnover, reflecting negative sentiment and uncertainty surrounding the upcoming elections.

NDB Securities said mixed interest was observed in ACL Cables, John Keells Hotels and Piramal Glass whilst retail interest was noted in LOLC Finance, Browns Investments and LVL Energy Fund.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Hayleys, Hemas Holdings and ACL Cables) whilst the sector index lost 0.69%. The share price of John Keells Holdings decreased by Rs. 1.25 to Rs. 194.25. The share price of Hayleys gained 25 cents to Rs. 101.50. The share price of Hemas Holdings moved down by 30 cents to Rs. 81.10. The share price of ACL Cables recorded a loss of 10 cents to Rs. 83.

The Materials sector was the second highest contributor to the market turnover whilst the sector index edged up by 0.09%. John Keells Hotels was also included among the top turnover contributors and its share price declined by 80 cents to Rs. 17.