Sri Lankan Shares drops to near five-week closing low on foreign selling
Sri Lanka, Aug 15 (Insights Equity) – Sri Lankan shares continued the losing streak for the fourth straight session on Wednesday recording its lowest close in nearly 5 weeks as foreign investors sold stocks in the index-heavy conglomerate John Keells Holdings PLC (JKH).
The broad market All Share Price Index (ASPI) shed more than 26 points declining 0.43 percent to reach 6,086.74, its lowest close since July 10, 2018, while more liquid S&P SL20 index dropped more than 7 points to stand at 3,267.75, 0.23 percent lower than the previous day.
After five consecutive sessions of net buying, foreign investors became net sellers as they sold shares worth a net LKR125.3 mn (USD0.8 mn) extending the year-to-date net foreign outflow to LKR2.8 bn (USD17.7 mn).
Furthermore, daily market turnover stood at LKR238.2 mn (USD1.5 mn), a 37 percent decline compared to yesterday and well-below the year-to-date daily average turnover of LKR832.6 mn (USD5.2 mn).
With a LKR154.9 mn of daily turnover, JKH was the leading turnover generator accounting for 65 percent of day’s turnover as the next four highest turnover generators collectively contributed only 12 percent. Meanwhile, no off-market negotiated trades were recorded for the day.
Sector-wise, diversified sector led the turnover generation with a 67 percent of contribution, followed by banks, finance and insurance sector which made up 18 percent.
Furthermore, Tess Agro (Voting) and On’ally Holdings were amongst the top gainers in the market while Lucky Lanka Milk Processing (Voting) and Renuka Foods (Non-voting) were two of the most actively traded stocks for the day.
Reporting by: Dulan Lokuwithana