Net foreign inflow tops Rs. 5 b

Locals may continue to lose heart but discerning and more critical foreign investors remain bullish on Lankan equities as the year to date net inflow crossed the Rs. 5 billion mark yesterday.

The topping the psychologically important Rs. 5 b mark was surpassed thanks to Rs. 340 million net buying witnessed by the Colombo Bourse yesterday in spite of the market closing flat.

Turnover was a healthy Rs. 1 billion and foreign buying was Rs. 474.2 million and selling amounted to Rs. 135 million resulting in a net buying of Rs. 340 million. Softlogic Stockbrokers said the inflow brought the year to date figure to Rs. 5.2 billion.

It said the benchmark index ended the day broadly flat at 5,704.62 points skewed towards the red with dominancy in large caps. Improved activity was witnessed despite seasonal sentiment with crossings contributing 36% to the turnover which surpassed the average turnover for 2013. Losses denoted in Ceylon Tobacco Company (-0.9%), Commercial Leasing & Finance (-2.2%) and CT Holdings (-2.2%) outweighed the gains made in Sri Lanka Telecom (+3.3%) and Nestle Lanka (+2.2%). The S&P SL20 index closed with a 7 point gain at 3,289.37 points.

John Keells Holdings spearheaded turnover: John Keells Holdings spearheaded the turnover with heavy on-board and off-board buying interest leading the diversified sector which took up 35% of the day’s turnover. Three off-market blocks accumulating to 1 million shares were transacted at Rs. 247 during mid-day before closing with a 02% gain at Rs. 247.0. Its hotel arm Asian Hotels & Properties encountered considerable number of midsized blocks at Rs. 70.

Banking, finance and insurance sector added 48% to the turnover with Sampath Bank dominating the sector with its approaching dividend payment. The counter saw 2 blocks carrying 500,000 shares which were crossed off at Rs. 224.5. Non-Voting shares of Hatton National Bank and Commercial Bank gained focus appreciating 2.6% and 1.2% at their intra-day high points. Nations Trust Bank saw some interest with a block of 106,000 shares which were taken on-board at Rs. 58.5. National Development Bank and DFCC Bank renewed their 52-week high points at Rs. 168.5 and Rs. 132.9 respectively.

Retail activity remained though some interest was witnessed in Central Investment and Finance according to Softlogic Stocbrokers.