Market snaps back-to-back weekly losses amid low volumes

Sri Lanka, May 24 (Capital Leads) – After two consecutive weeks of losses, both indices of the Colombo Stock Exchange (CSE) gained this week while the weekly market turnover dropped to the second lowest for the year so far. The market continued its five consecutive sessions of gains until Friday when foreign selling picked up dragging the overall market down.

The broad market All Share Price Index (ASPI) edged up 35.40 points, a gain of 0.67 percent from the previous week, to reach 5,295.11 points by Friday. Meanwhile, the more liquid S&P SL20 Index, climbed 17.27 points to reach 2,464.17 level, an increase of 0.71 percent from the week before.

Amid low volumes throughout the four-day trading week, the weekly market turnover reached LKR825.0 mn (USD4.7 mn), the second lowest for the year so far while YTD market turnover extended to LKR51.1 bn (USD290.1 mn). With only two crossings over the week, the off-board transactions generated only 28 percent of the week’s turnover while 41.2 mn shares changed hands in total.  

Driven by local investor interest, John Keells Holdings (JKH) and LOLC Holdings (LOLC) led the week’s turnover generation with 25 percent and 11 percent of contribution respectively while the former gained 1.47 percent in value over the week and the latter edged up 0.57 percent.

Furthermore, the Banks, Finance, and Insurance stocks spearheaded the sector-wise contribution to the turnover with 35 percent of turnover ahead of the sector of Diversified Holdings, which made up 28 percent.

Amid foreign selling in Chevron Lubricants (LLUB), weekly net foreign outflow continued into the third consecutive week as overseas investors sold shares worth a net LKR152.1 mn (USD0.9 mn), extending the YTD net foreign selling to LKR5.9 bn (USD33.5 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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