Local buying boosts weekly turnover in CSE

Sri Lanka, May 18 (Capital Leads) – Ahead of the long weekend on account of the National Vesak Festival, the Colombo Stock Exchange (CSE) witnessed back to back weekly losses this week amid local buying in John Keells Holdings (JKH) and Dialog Axiata (DIAL). The Sri Lankan Central Bank last week confirmed its plans to invest in the market through the Employees Provident Fund (EPF), the largest social security scheme in the country.

However, the broad market All Share Price Index (ASPI) dropped 67.97 points, 1.28 percent lower than the previous week to reach 5,259.71 points by Friday, while the S&P SL20 Index with a decrease of 2.87 percent, edged down 72.18 points to close the week at 2,446.90 points.

On Thursday, the market ended its ten-session-long losing streak driven by local investor interest in John Keells Holdings (JKH), while on Friday, the daily turnover exceeded LKR1 bn to reach a more-than-three-week high.

With off-board transactions contributing 29 percent of turnover, the weekly turnover more than doubled from last week to reach LKR3.1 bn (USD17.5 mn), compared to LKR2.5 bn (USD14.3 mn) of average weekly turnover for the year so far. The YTD market turnover meanwhile expanded to LKR50.3 bn (USD286.1 mn), while the total number of shares traded for the week stood at 115.2 mn.

John Keells Holdings (JKH) topped the weekly contribution to the turnover with 58 percent as the stock, driven by mixed selling and local buying, dropped 0.8 percent over the week while Dialog Axiata (DIAL), gaining 2.27 percent through foreign selling and local buying, made up 17 percent of the week’s turnover. East West Properties (EAST), which declared one of the most attractive dividends in the recent history last week, fell more than 60 percent in value as its ex-dividend date fell on Thursday.

Furthermore, Diversified Holdings spearheaded the sector-wise contribution to the turnover with 59 percent, followed by 17 percent from the sector of Telecommunications.

Amid sizable foreign outflow from John Keells Holdings (JKH) and Dialog Axiata (DIAL), the weekly net foreign outflow reached LKR1.3 bn (USD7.5 mn), extending the YTD net foreign selling to LKR5.7 bn (USD32.7 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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