YTD net foreign inflow tops Rs. 5 b mark; market at 18-month high

Net foreign inflow year to date crossed the Rs. 6 billion mark yesterday as investor sentiment in the Colombo stock market remained healthy. 

The market saw net foreign buying of Rs. 656.5 million boosting the YTD figure to Rs. 6.32 billion. 

Net foreign buying topped in RICH at Rs. 192.2 million followed by JKH (Rs. 103.7 million) COMBN (Rs. 83.4 million) and SAMPN (Rs. 59.3 million). Foreign selling topped in DFCC at Rs.  42.6 million.

The indices continued their gains - S&P SL20 by 0.66% and the ASPI by 0.36%. Turnover was Rs. 2.7 billion involving 78.8 million shares.

Asia Securities said the indices closed positive with notable price gains recorded by MGT (+5.8%), LIOC (+4.7%), RCL (+3.8%), CALT (+2.9%), TKYOX (+2.4%), and JKH (+1.9%). JAT (-5.1%), SEYBN (-2.3%), CFIN (-1.5%), HAYL (-1.6%), and LOLC (-0.6%) saw price losses during the session.

JKH (+12 points) came in as the major driver of the ASPI for the day, followed by COMB (+11 points), and LIOC (+6 points).The breadth of the market remained negative with 81 price gainers and 112 decliners.

Turnover was led by JKH (Rs. 428 million), and RICH (Rs. 197 million). 

First Capital said the bourse continued to rally for the 8th straight day while hitting a near 18-month high on the back of active retail participation. 

In the midst of selling pressure at the beginning of the session, index witnessed a shortfall to an intraday low of 11,613, yet subsequently shook off the early profit-taking by displaying a sharp rally on the blue-chips and banking sector, leading to 11,724

Revitalised buying interest was displayed on Treasury shares during the day after experiencing a price drop amidst the speculation on the possible implementation of a super gain tax on T-bill trades. 

With bullish optimism, the index was backed by blue-chip counters mainly, JKH and HHL which almost reached the First Capital Research target price for FY24E of Rs. 170 and Rs. 85 respectively.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Richard Pieris & Company, and Hemas Holdings. Mixed interest was observed in Commercial Bank, National Development Bank and CIC Holdings nonvoting whilst retail interest was noted in Pan Asia Banking Corporation, Browns Investments, and SMB Leasing nonvoting. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Richard Pieris & Company) whilst the sector index gained 1.37%.

The share price of John Keells Holdings increased by Rs. 3.75 to Rs. 199.50. The share price of Richard Pieris & Company gained 40 cents to close at Rs. 24.40.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and National Development Bank) whilst the sector index increased by 0.33%. The share price of Commercial Bank moved up by Rs. 1.50 to Rs. 105. The share price of National Development Bank recorded a gain of Rs. 1.10 to Rs. 82.90.

CIC Holdings nonvoting was also included amongst the top turnover contributors. The share price of CIC Holdings nonvoting appreciated by Rs. 1.80 to close at Rs. 58.