Sri Lanka, Mar 06 (Capital Leads) – The hype prevailed in the Colombo Stock Exchange (CSE) yesterday before the budget 2019 proved to be short-lived as market turnover slumped by a third today dragging both indices lower. John Keells Holdings (JKH) generated more than 80 percent of the day’s turnover driven by foreign selling.
Yesterday afternoon, the Sri Lankan government presented the budget for the last eight months of 2019, having passed the Vote on Account for the first four months back in December 2018. Ahead of the budget, both indices of the market recorded gains yesterday with the turnover exceeding LKR1 bn.
The broad market All Share Price Index (ASPI), losing 18.97 points reached 5,751.60 points, 0.33 percent lower than the previous session. Meanwhile, the more liquid S&P SL20 Index edged down 4.53 points to stand at 2,881.86 points, a decline of 0.16 percent from yesterday.
No crossings were witnessed in the market today as the turnover declined by two thirds from yesterday to LKR385.1 mn (USD2.2 mn), well-below the YTD average daily market turnover of LKR672.5 mn (USD3.8 mn).
John Keells Holdings (JKH), declining 0.32 percent in value driven by foreign selling, lifted the turnover as the stock contributed 82 of the turnover. Accordingly, the sector of Diversified Holdings spearheaded the sector-wise generation of turnover with 82 percent followed by 12 percent of contribution from Banks, Finance, and Insurance stocks.
Net foreign outflow for the session contracted to LKR317.8 mn (USD1.8 mn), while YTD net foreign outflow expanded to LKR5.7 bn (USD32.0 mn).