CSE posts the third weekly loss; turnover down 50 percent

Sri Lanka, Sep 28 (Insights Equity) – Despite witnessing near one percent losses twice during the holiday-shortened week, Sri Lankan stocks narrowed their losses this week as weekly turnover declined nearly 50 percent from the previous week.

ASPI drops 0.7 percent: The All Share Price Index (ASPI) fell 0.72 percent, to close the week at 5,862.18 points, 42.72 points lower than the previous week, while more liquid S&P SL20 index shed 14.76 points to reach 3,002.00 points, 0.49 percent weaker than the previous week.

Turnover declines 50 percent in the 4-day trading week: With only four days of trading, weekly turnover declined by 52 percent from the previous week to reach LKR1.7 bn (USD9.9 mn) while number of shares transacted stood at 51.7 mn shares, a 49 percent decline from the previous week.

Meanwhile, on-board contribution to the turnover was dominant as off-board transactions made up only 12 percent of weekly turnover, compared to 32 percent in the previous week.

Fed hikes interest rates; Net foreign selling continues: Foreigners sold stocks worth a net LKR279.1 mn (USD1.7 mn) during the week as net foreign selling continued for the fifth consecutive week expanding the year-to-date net foreign outflow to LKR6.1 bn (USD36.4 mn).

On Friday net foreign outflow continued for the eight straight session following the third short-term interest rate hike by the US Federal Reserve on Wednesday, with LKR likely to depreciate even further.

JKH leads weekly turnover generation: Dominating the weekly turnover generation with 35 percent of contribution, JKH gained 1.5 percent over the week as the stock witnessed local buying along with Sampath Bank which, making up 13 percent of the week’s turnover, gained 0.5 percent.

Meanwhile, stocks in the sector of diversified holdings spearheaded the sector-wise contribution to the weekly turnover with 41 percent ahead of banks, finance and insurance stocks which collectively made up 28 percent.

Graph - WeeklyOverview - WeeklyTables - Weekly

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