Net foreign outflow tops Rs. 30 b as CSE remains bearish

Net foreign outflow from the Colombo stock market year to date topped the Rs. 30 billion mark yesterday, as investor sentiment remained bearish. 

The market saw net selling worth Rs. 824 million yesterday, bringing the 2020 total to date to Rs. 30.9 billion. 

Acuity Stockbrokers said the Bourse ended on a negative note, as the ASPI decreased by 0.51% or 27.55 points to close at 5,335.66 points, while the S&P SL20 Index also decreased by 0.62% or 14.76 points to close at 2,364.91.

Turnover decreased by 6.4% relative to Wednesday to Rs. 1.89 billion, while the crossings for the day amounted to 25.2% of the total day’s turnover. 

First Capital opined that the unprecedented financial performance of LOLC tumbled the market on the negative direction for the second consecutive session. 

“The index experienced a gradual drop since the beginning of the session due to the selling pressure in LOLC, overpowering the buying interest in selective Capital Goods counters. Later during the last 30 minutes of trading, the market experienced a recovery and closed at 5,336 with a dip of 28 points,” First Capital said. 

It said Banking and Capital Goods counters dominated the turnover, contributing 71%, led by DFCC and Access Engineering. Moreover parcel trades in AEL, JKH and DFCC boosted the turnover amounting to 25% of the total. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Browns Investments and Lanka Orix Finance.

High net worth and institutional investor participation was noted in Access Engineering and DFCC Bank. Mixed interest was observed in LOLC Holdings, Expolanka Holdings and Dialog Axiata whilst retail interest was noted in Piramal Glass and Browns Investments. 

Furthermore, foreigners remained active, closing as net sellers, mainly due to foreign selling in DFCC

Bank and Access Engineering.  Total foreign sales accounted for 45.1% of the turnover. 

The Banking sector was the top contributor to the market turnover (due to DFCC Bank and Sampath Bank) whilst the sector index lost 0.61%. The share price of DFCC Bank increased by Rs. 0.20 (0.30%) closing at Rs. 67.00 whilst foreign holdings decreased by 6,003,017 shares. 

The share price of Sampath Bank closed flat at Rs. 126.00.

Capital Goods sector was the second highest contributor to the market turnover (due to Access Engineering and John Keells Holdings) whilst the sector index edged up by 0.06%.

The share price of Access Engineering gained Rs. 0.40 (1.84%) closing at Rs. 22.10 whilst foreign holdings decreased by 18,292,227 shares. The share price of John Keells Holdings recorded a gain of Rs. 0.50 (0.38%) to close at Rs. 133.50.

LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings moved down by Rs. 12.10 (7.85%) to close at Rs. 142.00.