Market PE remains attractive as stocks slide 9 percent by September

The Price-to-Earnings (PER) ratio of Sri Lankan stocks dropped to 9.2x from 9.5x reported at the beginning of the month, according to the monthly report published by the Colombo Stock Exchange (CSE) for the month of September 2018.

Market turnover dips in September: The turnover for September declined by 9.2 percent from the previous month to reach LKR10.9 bn (USD64.1 mn), with number of shares transacted for the month standing at 336.5 mn shares, 3.8 percent decline from the previous month.

However, net foreign outflow for the month stood at to LKR1.7 bn (USD9.7 mn), in comparison to LKR1.7 bn (USD9.7 mn) net outflow in August 2018 and LKR9.6 bn (USD56.1 mn) net outflow in September 2017.

With both indices witnessing record lows, Y-T-D- average daily turnover slumps from 2017: The All Share Price Index (ASPI) and S&P SL20 Index declined 8.6 percent and 18.9 percent during the first nine months of 2018 respectively, compared to 4.0 percent and 9.0 percent gains recorded for the same period in 2017.

Year-to-date market turnover for the first nine months declined to LKR141.0 bn (USD827.3 mn), compared to LKR165.6 bn (USD971.6 mn) for the same period last year; thus year-to-date average daily turnover stood at LKR574.5 mn (USD3.4 mn) in September 2018, more than 50 percent decline from the LKR1.4 bn (USD8.2 mn) recorded for the same period in 2017.

Sources: CSE Monthly Report 2018
Reporting by: Dulan Lokuwithana
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