Net foreign inflow in CSE for the third consecutive week

Sri Lanka, May 04 (Capital Leads) – Despite trading this year’s lowest weekly trading volume, the Colombo Stock Exchange (CSE) in the four-day trading week closed firm as net foreign buying continued for the third consecutive week.

The broad market All Share Price Index (ASPI) ended up flat at 5,438.75 points as it gained only 1.69 points over the week, a rise of 0.03 percent. More liquid S&P SL20 Index meanwhile edged up 17.19 points to reach 2,617.95 level, a gain of 0.66 percent from the previous week.

On-board transactions dominated the week’s trading as crossings made up only 5 percent of the total turnover while the trading volume for the week stood at 23.0 mn shares, the lowest for the year so far. The weekly turnover, as a result, dropped to LKR619.9 mn (USD3.2 mn), the second lowest for the year, extending the YTD market turnover to LKR45.8 bn (USD259.3 mn).  

Driven by foreign buying, John Keells Holdings (JKH) with a contribution of 17 percent, spearheaded turnover generation for the week as the stock ended 1.05 percent higher by Friday. Sampath Bank (SAMP) meanwhile gaining 0.97 percent in value witnessed foreign selling generating 13 percent of the week’s turnover.

Furthermore, generating 40 percent of the turnover, the sector of Banks, Finance, and Insurance led the sectoral contribution to the turnover, followed by 29 percent generated from Diversified Holdings.

The market this week witnessed net foreign inflow for the third consecutive week as foreign interest in John Keells Holdings (JKH) and Ceylon Tobacco (CTC) outweighed the foreign selling in Commercial Bank (COMB) and Hemas Holdings (HHL). During the week, overseas investors bought shares worth a net LKR56.0 mn (USD0.3 mn), slightly narrowing the YTD net foreign outflow to LKR4.4 bn (USD24.7 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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