Panic-selling at CSE results in indices losing 2 per cent but YTD net foreign inflow crosses Rs. 4 billion

By Hiran H. Senewiratne

The year to date (YTD) net foreign inflow at the CSE crossed the Rs. 4 billion mark on Tuesday but locals remained bearish yesterday and an element of panic selling resulted in indices losing nearly 2 per cent.

Foreigners were responsible for net buying of Rs. 468.3 million, boosting the inflow so far in February to Rs. 3.6 billion and YTD figure to Rs. 4 billion.

The All- Share Price Index fell by 10.3 points, while the most liquid share S&P SL20 was up by 15.2 points. Turnover stood at Rs 1.87 billion with four crossings. The crossing were reported in Expolanka Holdings, which crossed 1.98 million shares to the tune of Rs 337 million and its shares traded at Rs 170, Dipped Products 2.9 million shares crossed to the tune of Rs 80.9 million, its share price was stranded at Rs 27, Lanka IOC 115,000 shares crossed for Rs 20.5 million and its shares traded at Rs 178 and Asia Hotel Properties 500,000 shares crossed to the tune of Rs 20 million, its shares fetched Rs 40.

In te retail market top seven companies that mainly contributed to the turnover were; Softlogic Capital PLC Rs 332 million (32.2 million shares traded), Softlogic Life Insurance Rs 279 million (2.9 million shares traded), Expolanka Holdings Rs 129 million (744,000 shares traded), JKH Rs 105 million (755,000 shares traded), Lanka IOC Rs 60.8 million (339,000 shares traded), Browns Investments Rs 52.4 million (9.4 million shares traded) and First Capital Holdings Rs 37.4 million (1.18 million shares traded). During the day 82.2 million share volumes changed hands in 16000 transactions.

“The market started positive but sentiments have been pushed down by the IMF and news on delays on the local government elections, an analyst said.

It is said high net worth and institutional investor participation was noted in Nations Trust Bank, Lanka IOC and JKH. Mixed interest was observed in Softlogic Life Insurance, Aitken Spence and ACL Cables, while retail interest was noted in Softlogic Capital, Industrial Asphalts and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to JKH, Aitken Spence and ACL Cables), while the sector index lost 1.16 per cent. The share price of JKH decreased by one rupee to Rs. 140. The share price of Aitken Spence closed flat at Rs. 150. The share price of ACL Cables declined by Rs. 1.40 to Rs. 69.10.

The Insurance sector was the second highest contributor to the market turnover (due to Softlogic Life Insurance), while the sector index decreased by 4.78%. The share price of Softlogic Life Insurance lost Rs. 25.50 (19.84 per cent) to Rs. 103. Softlogic Capital was also included among the top turnover contributors.

Yesterday the Central Bank’s US dollar buying rate was Rs 359.60 and selling rate Rs 369.88.