Wild swings in CSE over the week ahead of the budget

Sri Lanka, Mar 01 (Capital Leads) – From highest net foreign inflow for the year to the lowest close in more than five years, the Colombo Stock Exchange witnessed sharp fluctuations over the past week as investors awaited the budget 2019 to be presented to the parliament next week.

Losing 1.43 percent, the broad market All Share Price Index (ASPI) dropped 83.41 points in total during the week to reach 5,754.31 points, its lowest close since November 28, 2013. Meanwhile, the S&P SL20 Index edged down 109.43 points to close the week 3.68 percent lower at 2,868.04 points on Friday.

With 24 percent of contribution from off-board transactions, the weekly turnover improved 73 percent from the week before to reach LKR3.8 bn (USD21.1 mn), as the market recorded the second highest turnover for the year on Thursday. YTD market turnover meanwhile expanded to LKR26.7 bn (USD148.5 mn) while the total number of shares traded for the week stood at 119.9 mn shares.

John Keells Holdings (JKH) made the highest weekly contribution to the turnover with 29 percent as the stock, driven by foreign buying, gained 0.32 percent over the week. Sampath Bank (SAMP) dropped 15.32 percent in value making up 8 percent of weekly turnover amid foreign selling.

Meanwhile, the Diversified Holdings spearheaded the sector-wise contribution to the turnover with 44 percent, ahead of the Banks, Finance and Insurance stocks which made up 29 percent.

After four consecutive weeks of outflows, the market witnessed net foreign buying during the week posting the highest net foreign inflow for the year so far on Thursday. Amid overseas investor interest in JKH, foreigners bought shares worth a net LKR497.9 mn (USD2.8 mn) as YTD net foreign selling contracted to LKR4.9 bn (USD27.3 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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