The Colombo Stock Exchange (CSE) saw its net foreign inflow surpass the Rs. 3 billion mark for July, despite a bearish outlook from local investors, according to brokers and analysts.
As of yesterday, the CSE recorded a net foreign inflow of Rs. 393 million, bringing the month-to-date total to Rs. 3.1 billion. John Keells Holdings (JKH) led the way with net foreign buying of Rs. 321.1 million.
However, this positive development was overshadowed by the declining indices for the third consecutive session. The benchmark All Share Price Index (ASPI) fell by 0.4%, and the active S&P SL20 dropped by 0.5%. The day’s turnover was Rs. 1.23 billion, with 24 million shares changing hands.
Asia Securities reported that the indices closed in the red, dragged down by declines in LOLC Finance (LOFC) at -1.6%, Browns Investments (BIL) at -1.8%, Dialog Axiata (DIAL) at -1.1%, Commercial Bank of Ceylon (COMBN) at -0.8%, and JKH at -0.6%. Conversely, GlaxoSmithKline (GLAS) at +1.0% and Teejay Lanka (TJL) at +1.3% closed in the green. Melstacorp (MELS) was the major positive contributor to the ASPI, while COMBN, John Keells Holdings, and Aitken Spence (SPEN) were the biggest laggards. Overall, 53 stocks ended in the green, while 82 settled with losses.
Crossings accounted for 66.8% of the turnover, led by JKH (Rs. 582 million), Hemas Holdings (HHL) (Rs. 124.1 million), and Hayleys (HAYL) (Rs. 121.9 million).
First Capital noted that the market continued to trend negatively amidst low investor sentiment, with increased activity at the start of the day that waned as the session progressed. The ASPI closed at 11,830, marking a 0.41% decrease from the previous day. The most significant negative contributors to the ASPI were COMB, SPEN, JKH, Richard Pieris (RICH), and Ceylon Tobacco Company (CTC). Conversely, MELS, SEMB, TJL, Carson Cumberbatch (CARS), and Tokyo Cement (TKYO) were the most significant positive contributors. The Capital Goods sector led turnover, contributing 77.1%, followed by the Materials and Diversified Financials sectors, which jointly contributed 8.2% to the overall turnover. The Banking sector’s contribution to turnover declined to 2.9%, reflecting negative sentiment and uncertainty surrounding the upcoming elections.
NDB Securities observed mixed interest in ACL Cables, John Keells Hotels, and Piramal Glass, while retail interest was noted in LOLC Finance, Browns Investments, and LVL Energy Fund.
The Capital Goods sector was the top contributor to market turnover due to John Keells Holdings, Hayleys, Hemas Holdings, and ACL Cables, although the sector index dropped by 0.69%. John Keells Holdings’ share price decreased by Rs. 1.25 to Rs. 194.25. Hayleys’ share price gained 25 cents to Rs. 101.50, while Hemas Holdings’ share price fell by 30 cents to Rs. 81.10. ACL Cables recorded a share price loss of 10 cents to Rs. 83.
The Materials sector was the second highest contributor to market turnover, with the sector index edging up by 0.09%. John Keells Hotels was also among the top turnover contributors, with its share price declining by 80 cents to Rs. 17.