Foreign buying propels CSE back to positive territory

Sri Lanka, Apr 24 (Capital Leads) – The Colombo Stock Exchange (CSE) returned to positive territory today amid sizable foreign buying in JKH as the first full day of trading got underway after bomb attacks ripped through the country on Easter Sunday.

Having witnessed the sharpest one-day loss in over seven years yesterday, the broad market All Share Price Index (ASPI) edged up 10.97 points higher to stand at 5,413.55 points, a gain of 0.20 percent from yesterday. Meanwhile, more liquid S&P SL20 Index moved 12.09 points higher to reach 2,603.00 points, an increase of 0.47 percent from the previous session.

Backed by two crossings from John Keells Holdings (JKH) and Cargills Ceylon (CARG), the off-board transactions made up 10 percent of the day’s turnover bringing the total number of shares traded to 23.5 mn. The daily market turnover reached its highest in one and half months to LKR2.0 bn (USD11.4 mn), as the YTD average daily market turnover expanded to LKR607.5 mn (USD3.5 mn).

Transacting 0.7 mn shares off-board at LKR140.0 apiece, John Keells Holding (JKH) led the daily turnover generation with 89 percent of contribution as the stock dropped 0.21 percent despite foreign investor interest. Trading in JKH meanwhile powered Diversified Holdings to lead sector-wise turnover generation with a 90 percent contribution.     

Led by foreign interest in JKH, the market witnessed the highest net foreign buying for the year so far as overseas investors bought shares worth a net LKR1.3 bn (USD7.6 mn) narrowing the YTD net foreign outflow to LKR4.7 bn (USD26.9 mn).

Disclosure: I/We have no investments in the stocks mentioned in the above article and don’t intend to open any within the next 72 hours. I wrote this article for myself, and it expresses my opinion. I/We receive no compensation, nor do I/We have any business relationship with any companies whose stocks are mentioned in the article.

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