Sri Lanka, Apr 09 (Capital Leads) – The Colombo Stock Exchange (CSE) continued losses for the third straight session today as turnover fell for a near-two-week low. With the country’s Central Bank keeping key policy rates unchanged, net foreign selling meanwhile nearly tripled from the previous session.
The broad market All Share Price Index (ASPI), losing 11.80 points, dropped to 5,583.66 points, 0.21 percent lower than the previous session, while more liquid S&P SL20 Index slipped 0.67 points to close firm at 2,720.41 points, a decline of 0.02 percent.
With no off-board transactions, the total number of shares traded stood at 14.6 mn, well-short of YTD average daily share volume of 15.8 mn. Daily market turnover meanwhile slumped to LKR187.6 mn (USD1.1 mn), less than a third of YTD average daily turnover of LKR626.4 (USD3.6 mn).
In a key policy meeting yesterday, the Monetary Board of the Central Bank of Sri Lanka kept Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) unchanged at 8.00 percent and 9.00 percent, respectively.
Dialog Axiata (DIAL) led the day’s turnover generation with 51 percent of contribution as the stock fell 3.19 percent in value amid foreign selling, while East West Properties (EAST) with 9.25 percent drop in value, made up 12 percent.
Furthermore, the sector of Telecommunications made up the highest sector-wise contribution to the turnover with 51 percent ahead of 18 percent from Banks, Finance and Insurance stocks.
Net foreign selling in the market meanwhile expanded nearly three times from yesterday as overseas investors sold shares worth a net LKR93.5 mn (USD0.5 mn), extending the YTD net foreign outflow to LKR5.9 bn (USD33.7 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.