Turbulent week in CSE amid record net foreign buying

Sri Lanka, Apr 27 (Capital Leads) – Despite witnessing the sharpest one-day loss in more than seven years, the Colombo Stock Exchange (CSE) this week posted the highest weekly net foreign inflow for the year so far. Following the Easter Sunday bomb attacks across the country, concerns over the security situation of the country continued to weigh on the investor sentiment.

Having been closed on Monday as a precautionary measure after attacks, the market on Tuesday witnessed the sharpest one-day loss since
February 14, 2012, driven by foreign selling. While overseas investor interest in the latter part of the week brought a modest recovery, early slump ended the overall week in negative territory.

The broad market All Share Price Index (ASPI) lost 169.29 points over the week to stand at 5,437.06 points by the end of the week with a weekly decline of 3.02 percent. More liquid S&P SL20 Index meanwhile fell by 109.51 points to reach 2,600.76 level, a loss of 4.04 percent from the previous week.

While crossings made up only 14 percent of weekly turnover, 55.2 mn shares in total changed hands during the week. The YTD market turnover moved up to LKR45.3 bn (USD2.7 bn) as the weekly turnover reached LKR3.1 bn (USD17.6 mn), more than five times that of the previous week of only three trading sessions.

Driven by significant foreign investor interest, John Keells Holdings (JKH) made the highest weekly turnover contribution of 70 percent despite losing 5.59 percent in value over the week. As a result, Diversified Holdings led the sector-wise contribution to the turnover with 73 percent followed by 18 percent from Banks, Finance and Insurance stocks.

The market continued to see net foreign buying this week as foreign investor interest in John Keells Holdings (JKH) moved net foreign buying up to LKR1.6 bn (USD8.9 mn), its highest for the year so far. As a result, the YTD net foreign outflow narrowed to LKR4.4 bn (USD25.2 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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