Less foreign selling but profit taking drags Bourse down
Tuesday, 11 February 2014 00:02
-
- {{hitsCtrl.values.hits}}
The Colombo stock market began a fresh week on a negative note due to profit taking and investor uneasiness though foreign selling was relatively lower after hitting over two year high last week.
Softlogic Stockbrokers said both indices trended downwards dipping after the first hour of trading. After mid-day the benchmark index consolidated around the 6,110 mark with a 31 point dip.
“Dialog, Ceylon Tobacco and DFCC weighted negatively on the index while gains in Sri Lanka Telecom and Carsons brought some respite for the index,” Softlogic added.
S&PSL20 followed a similar pattern with a dip of 14 points.
A couple of large crossings were witnessed in John Keells Holdings accounting for 2.2 million shares at Rs. 227 and Rs. 229 while weak on-board interest was noted in the counter. Three crossings were observed in Dialog with 19 million shares dealt at Rs. 9.20 each. A few mid-sized blocks of 1 million each changed as well on-board at the same price of Rs. 9.20. Further small sized crossings were noted in Commercial Bank, Textured Jersey and Orient Garments as well.
Orient Garments which is going through a mandatory offer saw three large on-board blocks of 1.8 million, 1 million and 2 million shares changing hands at Rs. 8.50 while Asia Asset Finance registered investor interest two large blocks of 10 million and 9.4 million shares done at Rs. 1.7.
Bluechips Sri Lanka Telecom and Hatton National Bank saw renewed investor attention with former recording a gain of 5.0% and latter recording a dip 0.1% for the day.
Some analysts linked SLT’s gain to impending acquisition of Hutch to consolidate with its subsidiary Mobitel whilst others said a big buyer was looking for quantities.
Retail interest was quite low during the day with the market trending down. Some interest was note in Asia Asset Finance and Expolanka Holdings.
NDB Stockbrokers said foreign selling continued (mainly due to JKH) with the figure crossing the Rs. 3.3 billion mark for the month of February so far. Institutional and high net worth interest was seen in John Keells Holdings, Dialog Axiata, Textured Jersey Lanka and Orient Garments.
Foreign selling yesterday amounted to Rs. 301.7 million with JKH accounting for most. Last week net foreign outflow was over Rs. 3 billion. Year to date net outflow was Rs. 2.3 billion.
“The present correction was expected after the steep gains made in January,” NDBS said.
Acuity Stockbrokers said profit taking by retail investors continued from Friday dragging down the indices. However interest by high net-worth individuals and institutions in JKH, DIAL, COMB and TJL helped turnover reach Rs. 1.32 billion.
JKH contributed Rs. 500.5 million to the turnover followed by Rs. 252 million by Dialog, Rs. 72.5 million by Orient Garments and Rs. 54 million b HNB.
As per Acuity data HNB (voting), Commercial Bank, textured Jersey saw net foreign buying though in smaller value.
Despite the dip, the year to date gain of ASI remained 3.3% whilst S&P SL 20 Index was up 2.8% both having lost some ground in recent weeks.
First Capital Equities said with the release of healthy 3Q2014 corporate results, we expect the market to trade range bound with an upward bias.
“We believe that healthy quarterly results released along with the prospect of lower bank interest rates and an improvement in investor sentiment should provide the necessary impetus for the bourse to penetrate through the key resistance level of 6200 and allow the market to enter a new phase of growth,” First Capital Equities added.
LOLC Securities said debt trading was active with a turnover of Rs. 60 million.
