Sri Lankan stocks lose steam as political impasse drag on

Sri Lanka, Oct 30 (Capital Leads) – After rallying over three percent in the previous two sessions, the Colombo Stock Exchange (CSE) edged up only a third of a percent today as the political fallout in the country continued.

Last week, Sri Lankan President, Maithripala Sirisena dismissed Ranil Wickramasinghe as Prime Minister and appointed the former President Mahinda Rajapakse as the new Prime Minister. The inaugural cabinet of the new government were sworn in yesterday with Mr. Rajapaksha being given the portfolio of Finance and Economic Affairs.  However, Mr. Wickramasinghe claims the appointment of the premier is unconstitutional and he remains to be the Prime Minister as he commands the majority in Parliament.

ASPI gains only 0.3 percent from 1.92 of yesterday: The broad market All Share Price Index (ASPI) advanced 20.14 points to reach 5,964.32 points, a gain of only 0.34 percent, compared to the gain of 1.92 percent recorded yesterday.

Meanwhile, more liquid S&P SL20 Index climbed 0.80 percent to stand at 3,083.20 points, a gain of 24.61 points from the previous session.

Turnover falls short of LKR1 bn mark as on-board transactions dominate: Despite six crossings from Tokyo Cement (TKYO), Hatton National Bank (HNB), Commercial Bank (COMB) and John Keells Holdings (JKH), off-board transactions made up only 21 percent of today’s turnover compared to 84 percent of the previous session.

With 31.6 mn shares changing hands, daily turnover reached LKR981.4 mn (USD5.7 mn), nearly a quarter of the level seen yesterday and well-above the year-to-date average daily turnover of LKR786.2 mn (USD4.5 mn).

Net foreign selling drops amid low turnover: Extending the year-to-date net foreign outflow to LKR13.0 bn (USD74.8 mn), foreigners offloaded stocks worth a net LKR155.3 mn (USD0.9 mn), nearly five percent of the net foreign selling of the previous session.

JKH leads the turnover generation; gains more than four percent: JKH, driven by foreign buying, dominated the turnover generation with 19 percent as the stock gained 4.2 percent backed by two crossings of 0.4 mn shares traded at LKR137.5 – LKR146.0 per share.

Meanwhile, Tokyo Cement, contributing 17 percent to the turnover, gained 1.6 percent backed by local buying as the stock witnessed 2.6 mn shares changing hands off-board at LKR25.0 per share.

Gaining 0.1 percent during the day, banks, finance and insurance sector led the sector-wise contribution to the turnover with 33 percent, followed by diversified holdings as the sector, edging 1.0 percent higher during the day, made up 25 percent of turnover.

Furthermore, Adam Investments and MTD Walkers were among the highest gainers of the market today while Access Enginering and Expolanka Holdings were two of the most actively traded counters of the day.

 

 

 

 

 

 

 

 

 

 

 

 

 

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