Saturday, 30 May 2020 09:40

Net foreign buying returns; CSE ends week positive

Foreigners stepped up interest on Lankan listed equities as they ended the week as net buyers, a phenomena not seen for months, whilst the Colombo bourse too achieved its second consecutive week of gain.

NDB Securities said foreign purchases yesterday account for 40% of Rs. 1.5 billion total turnover while ending the week as net buyers. They bought Rs. 622.3 million worth of shares and sold Rs. 328 million resulting in a net inflow of Rs. 294 million. On Wednesday the market saw a net foreign buying worth Rs. 121 million, first substantial figure since the CSE resumed trading after a seven-week closure on account of COVID-19 pandemic.

Despite the two indices of the CSE dipping yesterday, early strong gains enabled the market to close positive for the second consecutive week. NDB Securities said during the week the ASPI gained 0.98% while the S&P SL20 lost 0.9%, recording an average daily turnover of Rs. 1.2 billion.

First Capital said the ASPI yesterday was dragged down predominantly due to the price losses in big cap John Keells Holdings (JKH) and Ceylon Tobacco. The index reached its intraday high of 4,901 within the first few minutes of trading thereafter came tumbling down and hit its intraday low of 4,838 before closing at 4,847 losing 40 points.

NDB added Commercial Bank also contributed to the dip in ASPI. S&P SL 20 Index was down by 2%.

It said high net worth and institutional investor participation was noted in JKH, Hatton National Bank, Sampath Bank and Ceylon Tobacco Company. Mixed interest was observed in Commercial Bank, Dialog Axiata and Hatton National Bank nonvoting whilst retail interest was noted in Expolanka and First Capital Holdings.

Capital Goods sector was the top contributor to the market turnover (due to JKH) whilst the sector index lost 2.70%. The share price of JKH decreased by Rs. 5.70 (4.92%) to close at Rs. 110.10.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank, Sampath Bank and Commercial Bank) whilst the sector index decreased by 1.67%. The share price of Hatton National Bank lost Rs. 2.10 (2.02%) to close at Rs. 101.80. The share price of Sampath Bank moved down by Rs. 1.40 (1.17%) to close at Rs. 118.60. The share price of Commercial Bank recorded a loss of Rs. 1.80 (2.78%) to close at Rs. 63.00.

Dialog Axiata was also included amongst the top turnover contributors. The share price of Dialog Axiata declined by Rs. 0.20 (1.89%) to close at Rs. 10.40.

First Capital suggested market sentiments were impacted on the back of recent Fitch report regarding the credit worthiness of domestic issuers after the sovereign rating downgrade. Banking and capital goods sectors contributed to 73% of the turnover for the session while parcel trades made in CTC and SAMP boosted it substantially.

(FT)

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