YTD net foreign inflow tops Rs. 5 b as local investors join bullish mindset

The Colombo stock market enjoyed its second session of gain yesterday amidst improved turnover and record foreign net inflow.

The active S&P SL20 gained by over 1% and the benchmark ASPI by 0.7%. Turnover was Rs. 1.9 billion involving 57.7 million shares.

Net foreign inflow yesterday amounted to Rs. 377.6mn boosting the inflow for November to Rs. 862.1 million and year to date to Rs. 5 billion.

Asia Securities said the market ended November on a high note driven by renewed investor sentiment following the Government’s successful agreement with its Official Creditor Committee, paving the way for the Government to secure the next USD 334mn tranche from the IMF. 

The ASPI opened the session with a 75-point gap-up at 10,588 and stayed in positive territory throughout the session amidst  widespread investor interest.  

A late pick-up saw the ASPI crossing the 10,600 briefly, however the index settled down at 10,594 (+81 points). Notable buying activity was observed in JKH (+2.8%), CALT (+4.9%), CFVF (+1.6%), FCT (+2.3%), RCL (+1.9%), AEL (+2.7%), and ALUM (+2.4%). Additionally, the banking sector index recorded a 1.2% gain, driven by price increases in COMBN (+1.6%), PABC (+3.9%), NDBN (+1.8%), and SEYBX (+5.0%). JKH (+16 points), COMBN (+9 points), and MELS (+6 points) came in as the major drivers of the ASPI. 

The breadth of the market was positive with 101 price gainers outnumbering 50 decliners.

On the activity front, turnover improved significantly. JKH (Rs. 801mn) topped the turnover list, followed by EXPO (Rs. 216mn), HNBN (Rs. 127mn), and BIL (Rs. 106mn).  Foreigners generated a strong inflow of Rs. 343mn led by net buying in JKH (Rs. 606mn) while EXPO recorded the highest outflow (Rs. 200mn) for the day. 

Frist Capital said the Bourse sustained its upward trajectory for the second consecutive day following Sri Lanka’s pivotal agreement with the Official Creditor Committee (OCC), led by the Paris Club and India, for debt restructuring in alignment with IMF program parameters.

The deal, which is crucial for the country’s economic recovery, involves restructuring about USD 5.9Bn in debt. 

Amidst the positive developments, active collection extended on Banking sector and Blue chip counters, including JKH and MELS. In response to that, the index spiked by over 80 points at the outset and continued to trade positively throughout the day, closing at 10,594. Moreover, as the WAYR at the Bills and bond auction continued to decelerate, buying sentiment reactivated on the Treasury counters. With macro uncertainties easing, retail participation improved.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, John Keells Holdings, and Chevron Lubricants. Mixed interest was observed in Expolanka Holdings, Nations Trust Bank and Sampath Bank whilst retail interest was noted in Browns Investments, Lanka Credit and Business Finance, and Prime Lands Residencies. 

During the month, the ASPI lost 0.5% and the S&P SL20 gained 0.5% whilst recording an average daily turnover of Rs. 1.08 Bn.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 1.97%. The share price of John Keells Holdings increased by Rs 5.25 to Rs 191.75.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank and Nations Trust Bank ) whilst the sector index increased by 1.22%. The share price of Hatton National Bank moved up by Rs 1.25 to Rs 165.25. The share price of Nations Trust

Bank appreciated by 50 cents to Rs 100.50.

Expolanka Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of Expolanka Holdings closed flat at Rs 130. The share price of Browns Investments closed flat at Rs 4.90.

Separately Resus Energy announced its interim dividend of Rs. 1.25 per share.