Stock market closes on the up; YTD foreign outflow nears Rs. 25 b

The Colombo stock market bounced back yesterday albeit in a moderate way after declining Wednesday with improved turnover though foreign selling continued.

The All Share Price Index gained by over 30 points or 0.6% and the S&P SL 20 Index improved by near 10 points of 0.4%. Year-to-date ASPI is down 15.5% and S&P SL 20 lower by 24%

Turnover was Rs. 889 million, up from Rs. 603 million on Wednesday.

First Capital said signals of political solidity being witnessed with limited electoral results aided the bourse to advance, reversing yesterday’s market slip. 

“The index experienced a sideways volatile movement till the latter part of the day and thereafter recorded an upsweep on the back of buying interest in Banking and Capital Goods counters and closed at 5,177, gaining 30 points,” First Capital said. 

It said the Banking sector took over the dominance of the turnover contributing 43% led by HNB and COMB. Foreign investors recorded low participation, playing the waiting game, giving edge to the selling side, which resulted in a net outflow.

Foreign net outflow yesterday was Rs. 235 million, increasing the year-to-date outflow to near Rs. 25 billion.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as John Keells Holdings, Asian Hotels & Properties and Ceylinco Insurance.

High net worth and institutional investor participation was noted in Hatton National Bank and Commercial Bank. Mixed interest was observed in Sampath Bank, Access Engineering and John Keells Holdings, whilst retail interest was noted in Tokyo Cement Company non-voting and Piramal Glass. Furthermore, foreigners closed as net sellers mainly due to foreign selling in Hatton National Bank and Commercial Bank.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank and Sampath Bank) whilst the sector index gained 0.27%.

The share price of Hatton National Bank increased by Rs. 0.30 (0.27%) closing at Rs. 113.30 whilst foreign holdings decreased by 1,062,733 shares. The share price of Commercial Bank closed flat at Rs. 77 whilst foreign holdings decreased by 663,831 shares. 

Furthermore, the share price of Sampath Bank moved up by Rs. 1.30 (1.05%) to close at Rs. 124.90. Materials sector was the second highest contributor to the market turnover (due to Tokyo Cement Company non-voting) whilst the sector index increased by 0.62%. 

The share price of Tokyo Cement Company non-voting appreciated by Rs. 0.80 (2.52%) to close at Rs. 32.60.

Access Engineering was also included amongst the top turnover contributors. The share price of Access Engineering recorded a gain of Rs. 0.40 (1.88%) to close at Rs. 21.70.