Post-holiday trading brings lowest weekly turnover

Sri Lanka, Apr 19 (Capital Leads) – The weekly turnover of the Colombo Stock Exchange (CSE) this week dropped to its lowest for the year 2019 as the market witnessed only three days of trading amid back to back long weekends. With no trading conducted on Monday as the country celebrated Traditional Sinhala and Tamil New Year over the past weekend, markets will also be closed on Friday marking a public holiday.

However, the broad market All Share Price Index (ASPI) inched up 21.05 points over the week to stand at 5,606.35 points by the end of the week with a weekly gain of 0.38 percent. More liquid S&P SL20 Index fell by 3.04 points to reach 2,710.27 level, a loss of 0.11 percent from the previous week.

While crossings made up nearly 40 percent of weekly turnover, 30.0 mn shares in total changed hands during the week. Amid thin trading volumes, the weekly turnover meanwhile dropped to LKR562.0 mn (USD3.2 mn), the lowest for the year so far, extending the YTD market turnover to LKR42.1 bn (USD241.6 mn).  

Driven by foreign selling, Dialog Axiata (DIAL) with a weekly turnover contribution of 18 percent made the highest weekly turnover generation as the stock dropped 1.10 percent over the week. Both John Keells Holdings (JKH) and East West Properties (EAST) meanwhile made up 15 percent each amid foreign investor interest as the former dipped 0.65 percent in value and the latter gained 6.15 percent. East West Properties (EAST) last week announced the sale of 71.82 percent of its stake in the subsidiary, Weligama Hotel Properties Limited to HPL Properties (West Asia) Private Limited for a consideration of USD15.9 mn.

Furthermore, the sectors of Diversified Holdings and the Banks, Finance, and Insurance each made up the highest sectoral contributions of 20 percent.

Backed by foreign inflow in John Keells Holdings (JKH) and East West Properties (EAST), the market returned a net foreign inflow this week. Overseas investors bought shares worth a net LKR80.6 mn (USD0.5 mn) over the week, narrowing the YTD net foreign outflow to LKR6.0 bn (USD34.3 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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