Foreign sell out persists but Bourse survives to close marginally positive
Wednesday, 12 February 2014 00:16
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Foreign sell out continued in the Colombo stock market but the benchmark index ASI ended a fluctuating day marginally positive.
As part of profit taking and exit from emerging markets, net foreign selling amounted to Rs. 833 million yesterday bringing the year to date outflow to Rs. 3.2 billion. During the past four market days net foreign selling was Rs. 4.6 billion. JKH led the foreign exodus yesterday with Rs. 1.1 billion or 4.96 million shares sold followed by Richard Pieris 1.9 million shares worth Rs. 13 million. A block of 5 million JKH shares traded at Rs. 222 each via a crossing.
Going against the trend, HNB saw 1.09 million shares or Rs. 172 million worth of net foreign buying. Commercial Bank, CT Holdings, Distilleries were among others who saw net foreign buying though their values were below double digit figures.
Softlogic Stockbrokers said the bourse ended indecisively yesterday where benchmark indices closed opposites. ASPI settled at 6,113.16 with a gain of 3 points while S&PSL20 closed at 3,349.35 with a dip of 5 points. Gains denoted in Ceylon Tobacco Company (+1.1%), Cargills Ceylon (+2.3%) and the losses denoted in John Keells Holdings (-2.0%) held ASPI in the marginal ground. Turnover levels were sold nearing LKR2bn supported by large blocks of off-board transactions.
Year to date ASI is still up 3.4% whilst S&P SL 20 Index is up 2.6%.
Softlogic said six crossing spearheaded daily turnover adding 72% of Rs. 1.98 billion turnover.
JKH spearheaded the daily turnover backed by a single 5 million crossing at Rs. 222. The counter displayed active on-board interest as well and closed at Rs. 224.8 with a dip of 1.8%.
HNB and Lanka IOC too denoted off-board interest where the former recorded three off-board transactions accumulating to Rs. 975,000 shares which changed hands at Rs. 157 while the latter crossed two off-board blocks amounting to 1.8 million shares at Rs. 40.
With the sound earning release, LIOC traded actively. The counter closed at Rs. 39 with a gain of 2.6%. Distilleries, Vidullanka and Textured Jersey Lanka too depicted off-board interest during the day.
JKH Warrants displayed active on-board interest during the day where JKH Warrant 0023 topped the on-board turnover and ended at Rs. 65.1 with a dip of 2.8%. JKH Warrant 0022 also had some on-board participation and closed at Rs. 63.2 with a dip of 1.9%.
Retail interest was seen in The Finance Non-Voting and Expolanka Holdings. EXPO denoted some large on-board trades, the largest being the two transactions aggregating to 1.1 million shares which were picked at Rs. 9. The counter ended at Rs. 9.1 with a gain of 1.1%,
Although CSE is currently in a rangebound scenario, First Capital Equities believes the market will continue to edge upwards with the majority of companies recording healthy top line growth on the back of robust domestic economic conditions.
“Being in midst of the 3Q2014 corporate financial reporting season, we emphasize the need for investors to select companies that not only deliver quality earnings in 3Q2014 but also report sustainable growth while being cautious of those companies that may record unusually sharp earnings growth without a corresponding increase in top line revenues,” the broker added.
