Sri Lankan stocks post the highest weekly gain in nearly two months

Sri Lanka, Sep 07 (Insights Equity) – Sri Lankan shares recorded the highest weekly gain in seven weeks despite the market witnessing the lowest daily turnover in five months on Thursday, as foreigners remained net sellers for the second consecutive week.

ASPI records the highest close in seven weeks: The All Share Price Index (ASPI) witnessed a gain of 0.62 percent, its highest since the week ending July 20, 2018, to reach 6,117.89 points by Friday’s close as the index edged up 37.63 points over the week.

Meanwhile, S&P SL20 index, which tracks the largest and most liquid stocks, dropped 12.39 points during the week, to stand at 3,216.82 points, 0.38 percent lower than the previous week.

Weekly turnover drops more than half amid thin trading volumes: The weekly turnover declined by more than 50 percent to reach LKR1.3 bn (USD8.3 mn), as the market recorded its lowest daily turnover since April 16, 2018 on Thursday.

Crossings decline by 65 percent: With off-market negotiated trades declining by 65 percent from the previous week to make up only 30 percent of weekly turnover, number of shares transacted nearly halved from the previous week to reach 55.7 mn shares.

Year-to-date net foreign outflow tapers off: Meanwhile, foreign investors became net sellers for the second consecutive week as they sold shares worth a net LKR63.9 mn (USD0.4 mn) during the week, nearly a tenth of the previous week and half of the average weekly net foreign outflow of LKR123.4 mn (USD0.8 mn) for the year. Thus, year-to-date net foreign outflow expanded to LKR4.3 bn (USD26.7 mn).

JKH decline 1 percent; banking stocks lead sectoral contribution: John Keells Holdings (JKH) spearheaded the weekly turnover generation with a contribution of 19 percent, as foreigners continued to offload the stock wiping off more than 1 percent of its value over the week.

Meanwhile, banks, finance & insurance stocks dominated the sector-wise contribution to the weekly turnover with 31 percent ahead of beverage, food and tobacco stocks which collectively made up 23 percent.

Graph - WeeklyOverview - WeeklyTables - Weekly

Reporting by: Dulan Lokuwithana
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