Weekly turnover drops as stocks hover over five-year low

Sri Lanka, Mar 16 (Capital Leads) – Despite the full trading week, the weekly market turnover of the Colombo Stock Exchange (CSE) fell from the holiday-shortened week before as stocks continued to hover around a more than five-and-half-year low.

Losing 106.01 points over the week, the broad-market All Share Price Index (ASPI) closed 1.85 percent lower than the previous week to stand at 5,616.24 points, its lowest close since September 09, 2013. More liquid S&P SL20 Index meanwhile edged down 98.49 points to reach 2,761.10 points, a weekly decline of 3.44 percent.

Amid 54 percent of contribution from off-board trades, the weekly turnover dropped 18 percent from the week before to reach LKR3.4 bn (USD19.2 mn), extending the YTD market turnover to LKR34.3 bn (USD192.1 mn). However, the total number of shares traded for the week improved 30 percent from the previous week to 84.8 mn shares.

The Commercial Bank (COMB) made the highest weekly contribution to the turnover with 39 percent as the stock slipped 2.94 percent over the week. John Keells Holdings (JKH), contributing 14 percent to the turnover, fell 2.64 percent driven by foreign selling while Nations Trust Bank (NTB) making up 10 percent of the week’s turnover enticed foreign interest to climb 0.11 percent.

Meanwhile, the Banks, Finance and Insurance stocks led the sector-wise contribution to the turnover with 58 percent, ahead of Diversified Holdings which made up 17 percent.

Amid foreign inflow in Hemas Holdings (HHL), Nations Trust Bank (NTB) and Ceylon Cold Stores (CCS), the market posted net foreign inflow this week, a sharp reversal from over LKR1 bn net outflow last week.  With the weekly net inflow standing at LKR44.6 mn (USD0.3 mn), the YTD net foreign outflow contracted to LKR5.9 bn (USD32.9 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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