Bourse bullish

■Year to date net foreign inflow tops Rs. 15 b; ASI return nears 25%

The Colombo stock market remained bullish despite some skepticism from certain quarters with year to date net inflow topping the Rs. 15 billion mark and the return nearing 25%.
Thanks to sustained buying by foreigners as well as locals, the All Share Index remained on the up, gaining by 26 points to close at 7,353 points level. The year to date return of ASI was close to 25% with it hovering around 24.36% as of yesterday. The S&P SL 20 was cruising at 25.76% year to date return.


Foreign investors who have shown greater resilience and confidence in Lankan equities with near Rs. 8 billion worth of net buying began November on a positive note as well. Yesterday net foreign buying was Rs. 477 million bring the year to date tally to Rs. 15.25 billion.
“The Indices closed in the positive territory mainly due to price gains in Commercial Bank, Hemas Holdings and Lanka IOC while turnover crossed Rs 1.6 billion mark,” NDB Equities said. “High net worth and institutional interest was witnessed in Nations Trust Bank, John Keells Holdings, Commercial Bank and John Keels Holdings Warrant 23,” it added.

NDB said retail interest was seen in Browns Investments, ACME Printing and Packaging Rights, Hayleys MGT Knitting Mills and Piramal Glass. Meanwhile, mixed interest was seen in Tokyo Cement, Asiri Hospitals and Renuka Agri Foods. Foreigners remained active closing as net buyers due to foreign buying in counters such as John Keells Holdings and Commercial Bank.
Lanka Securities said out of 271 counters, 145 advanced, 72 declined while 54 counters remained unchanged. Cash map advanced to 56% from 47%. 17 counters reached 52wk high prices while 6 counters touched 52wk low price levels.

“Subsequent to the release of interim financial statements, Abans Finance attracted heavy investor interest and counter closed at Rs. 31.20 (+19.1%). Further, Softlogic Holdings, Lanka IOC and People’s Leasing & Finance were among heavily traded counters,” the broking firm said. Following the release of the positive quarter earnings for the June-September quarter, Renuka Agri Foods counter was among the most favored counters of the day. Counter closed at Rs. 4.20 (+10.5%), it added.

First Capital Equities said the ASPI continued its ascent into the new month with the index rising 26 points to 7,353 with an intra-day high being achieved in the last half hour of trading at 7,362. It said COMB was the main driver of the index’s rise while banking sector counters and diversified holdings were top favourites among foreign investors. Foreigners were net buyers of Rs. 477 million despite a fall in foreign purchases during the day. On the crossings board, 2.6 million shares of NTB traded at Rs. 95 with parcel trades of NTB, JKH and COMB trading at 52 week high prices, First Capital added.

Asia Securities said The ASPI continued the upward momentum witnessed during the previous week with the investor interest mainly centred around Bank, Finance & Insurance and Diversified sectors during the day. “Active domestic investor participation together with net foreign inflow amounting to Rs. 477.4 million supported market turnover,” it added.
The benchmark index rose largely due to the price gains in index heavy weights, including, Commercial Bank of Ceylon, Hemas Holdings, Lanka IOC, etc; whilst positive to negative contributors to the ASPI. Nations Trust Bank emerged as the day’s top turnover contributor preceding the purchase of 5.53% stake by HWIC Asia fund at Rs. 95 on Friday which increased its total holding in the bank to 15%, while the share gained 1.9% during the day and closed at Rs. 95.7. John Keells Holdings came in next boosted by four crossings totalling to 620, 700 shares at Rs. 258, whilst moderate trading with few block trades were witnessed in the normal board. In addition to the above, crossings were witnessed in Commercial Bank of Ceylon and John Keells Holdings (W0023). Meanwhile, heavy retail and high net worth interest was witnessed in stocks such as Abans Finance, Softlogic Holdings, Lanka IOC, Renuka Agri Foods etc, Asia Securities said.


Reuters said stocks rose for an eighth straight session to close at a more than three-week high, led by banks and diversified shares, with foreign buying in risky assets and hopes of better corporate earnings boosting sentiment.
“We are seeing moderate investor interest in all segments. They are waiting to see the outcome of earnings,” Dimantha Mathew, manager, research at First Capital Equities Ltd, was quoted as saying by Reuters
It said analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.
The country’s central bank has kept key policy rates steady for a ninth straight months, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards.
President Mahinda Rajapaksa will seek an early re-election in January, seeking to pre-empt any decline in support after nearly nine years in power.

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