Net foreign inflow at Colombo stock market soars to Rs. 10 b

The year-to-date net foreign inflow to the Colombo stock market rose to Rs. 10 billion largely driven by Japan’s SG Holdings buying into Sri Lanka’s most valuable blue chip Expolanka Holdings PLC. 

According to First Capital, as of yesterday net inflow was Rs. 9.97 billion with September alone so far contributing Rs. 9.4 billion. The near Rs. 10 billion mark was boosted by an infusion of Rs. 2.4 billion yesterday. First Capital said in September so far foreign buying into Expolanka Holdings amounted to Rs. 10.5 billion.

This is the first time in four years that the CSE has seen a net foreign inflow. Last year net foreign outflow was Rs. 53 billion and in 2020, it was Rs. 51 billion and Rs. 11.7 billion and Rs. 23 billion in the preceding year. The previous net inflow was in 2017 at Rs. 17.6 billion.

Apart from bullish foreign buying, the market saw indices declining by 1% due to profit taking. Turnover was Rs. 6 billion involving 124 million shares.

Asia Securities said the indices closed in red for a third session mainly due to price losses in LOLC (-3.3%), RICH (-3.2%), CICX (-2.8%), BIL (-1.3%), LOFC (-3.3%) and SAMP (-3.8%). However, LIOC witnessed another strong session on the back of continued retail buying, scaling a sharp 4.2% gain for the day. Overall retail and HNI activity remained at healthy levels with turnover led by EXPO (Rs. 2,766mn), LIOC (Rs. 772mn), and CIC (Rs. 155mn). 

Following a 67-point gap-up, the index changed direction returning to negative territory and eventually ended the session with a decline of 124 points. Overall, 53 stocks ended higher while 154 settled with losses.

First Capital said the Bourse recorded losses for the third straight session as investors resorted to booking profits after the recent rally predominantly in Banking and Consumer Services counters. Index slid sharply into red and continued the downtrend throughout the day as investors set on a selling spree and closed at 9,901 losing 124 points. However, gains were witnessed in the Energy sector and Transportation sector backed by retail favourite LIOC and EXPO, respectively.

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Cargills and John Keells Holdings. Mixed interest was observed in Lanka IOC, CIC Holdings and Lankem Developments whilst retail interest was noted in Browns Investments, SMB Leasing and Lanka Credit and Business Finance. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 0.66%. The share price of Expolanka Holdings increased by Rs. 1.50 (0.67%) to close at Rs. 224.75.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 4.03%. The share price of Lanka IOC gained Rs. 11.25 (4.19%) to close at Rs. 279.75.

CIC Holdings, Lankem Developments and First Capital Treasuries were also included amongst the top turnover contributors. 

The share price of CIC Holdings closed flat at Rs. 90. The share price of Lankem Developments recorded a gain of 20 cents to close at Rs. 35.20. The share price of First Capital Treasuries appreciated by Rs. 2.70 (15.70%) to close at Rs. 19.90.