Net foreign inflow crosses Rs. 4 b mark as locals remain bearish

• Indices remain in red; SCAP, AAIC record double-digit losses
• Panic selling stirs ASPI down

The year to date (YTD) net foreign inflow crossed the Rs. 4 billion mark yesterday but locals remained bearish and an element of panic selling resulted in indices losing nearly 2%.

Foreigners were responsible for net buying of Rs. 468.3 million, boosting the inflow so far in February to Rs. 3.6 billion and YTD figure to Rs. 4 billion.  

Net foreign buying topped in Aitken Spence with Rs. 252.5 million followed by JKH (Rs. 148 million), NTB (Rs. 70 million and Hela (Rs. 35 million). Foreign selling was most seen in Lanka IOC at Rs. 70.8 million. 

Asia Securities said the indices reached a four-week low on Tuesday due to domestic selling pressure in front-line counters. AAIC (-19.8%) and SCAP (-24.5%) ended with double-digit losses while LOLC (-1.4%), LIOC (-3.9%), BIL (-1.7%), and COMB (-2.5%) also closed lower during the session. COMB (-13 points), AAIC (-9 points), and LIOC (-8 points) were the major laggards on the ASPI during the session. 

The breadth of the market ended weak with 19 price gainers and 158 decliners. 

Turnover amounted to Rs. 2.2 billion (previous session Rs. 1.3 billon) led by JKH (Rs. 321 million), AAIC (Rs. 287 million), and SPEN (Rs. 260 million). 

First Capital said the bourse ended in the red for the fourth straight day as panic selling stirred among investors following the poor quarter performance of companies while delay in the IMF board level agreement further added to the woes. Index opened a sharp downtrend and continued to move negatively despite a slight upswing during the initial hour and eventually closed in the red at 8,639 losing 152 points. 

Selling was observed largely across all counters but predominantly on Insurance sector counters such as AAIC after speculations rose on the sale value of the company to be lower than anticipated. However, market turnover topped at a 1-week high of Rs. 2.3 billion led by off-board transactions. 

NDB Securities said high net worth and institutional investor participation was noted in Nations Trust Bank, Lanka IOC and John Keells Holdings. Mixed interest was observed in Softlogic Life Insurance, Aitken Spence and ACL Cables whilst retail interest was noted in Softlogic Capital, Industrial Asphalts and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Aitken Spence and ACL Cables) whilst the sector index lost 1.16%. The share price of John Keells Holdings decreased by one Rupee to Rs. 140. The share price of Aitken Spence closed flat at Rs. 150. The share price of ACL Cables declined by Rs. 1.40 to Rs. 69.10.

The Insurance sector was the second highest contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index decreased by 4.78%. The share price of Softlogic Life Insurance lost Rs. 25.50 (19.84%) to Rs. 103. Softlogic Capital was also included amongst the top turnover contributors. The share price of Softlogic Capital recorded a loss of Rs. 3.90 (24.53%) to Rs. 12.