The Colombo Stock Exchange (CSE) witnessed a marginal gain yesterday, with both the All-Share Price Index (ASPI) and the S&P SL20 index inching up by 0.3% and 0.2% respectively. However, this positive movement was overshadowed by the year-to-date (YTD) net foreign outflow, which surpassed the Rs. 4 billion mark.
Despite the foreign selling, the market displayed resilience, continuing its upward trend for the third consecutive session. This positive momentum was attributed to growing investor confidence, particularly among retail investors, who were bargain hunting after recent price declines. Notably, banking counters like Commercial Bank (COMB), DFCC Bank (DFCC), and NDB Bank (NDB) experienced significant buying activity.
The market witnessed some notable gainers, with DPL (Delmege Poultry), DFCC, and Lanka Milk Foods (LMF) leading the surge. Conversely, John Keells Holdings (JKH), Hatton National Bank (HNB), and Richard Pieris & Company (RCL) experienced price declines.
DPL witnessed a significant off-market transaction, with a 3.3% stake change involving 5.4 million shares. Additionally, high net worth and institutional investors showed interest in Dankotuwa Porcelain, John Keells Holdings, and Seylan Bank non-voting shares.
The Capital Goods sector, primarily driven by John Keells Holdings and Vallibel One, emerged as the top contributor to the market turnover. However, the sector index witnessed a marginal decline of 0.60%. The Banking sector, largely influenced by Nations Trust Bank, followed closely in terms of contribution, with the sector index registering a gain of 0.61%.
Overall, the Colombo Stock Market displayed a mixed performance yesterday. While the indices edged up marginally, the ongoing foreign outflow remains a cause for concern. However, the increasing retail investor activity and bargain hunting suggest a potential for continued market movement in the coming days.