CSE sees selling pressure; net foreign outflow hits Rs. 34.2 billion

By Hiran H. Senewiratne

CSE activities witnessed selling pressure throughout yesterday due to fears of a wide spread of the Covid 19 Delta variant throughout the country. The market had not picked up despite the government completing the groundwork towards the settlement of the US $ 1 billion worth International Sovereign Bonds (ISB) which matured yesterday, stock market analysts said.

The market was somewhat worried that if the government opted to go for another lockdown in the event of the spreading of the Covid 19 new variant, it would mainly affect tourism and other major sectors in the country. As a result, the market expressed some negative sentiments, market analysts said.

The CSE turned negative indices-wise, but investor activity remained high with Rs. 2.31 billion in turnover being realized without a single crossing. Foreign selling was visible and yesterday net foreign outflow hit Rs. 34.2 billion and during the last two to three sessions more than Rs. 4 billion net foreign selling was reported, analysts said.

Exit of LF Ruffer Pacific and Emerging Markets Fund from Asiri Holdings PLC accounted for a bulk of the foreign selling the previous day. Asiri Hospital Holdings saw Rs. 40.3 million of its shares traded for Rs. 1.3 billion. Its share price closed at Rs. 29.40, up by 30 cents on Monday.

Both indices moved downwards. The All Share Price Index was down by 29.75 points and S and P SL20 declined by 7.06 points. Turnover stood at Rs 2.31 billion. On the retail market front, five companies that mainly contributed to the turnover were, Expolanka Rs. 685.6 million (10.4 million shares traded), Dipped Products Rs. 161.7 million (2.8 million shares traded), LOLC Rs. 132.4 million (249,000 shares traded), Royal Ceramic Rs. 76.1 million (1.97 million shares traded), and Browns Investments Rs. 74.1 million (11.7 million shares traded).

People’s Leasing had announced a debenture issue to raise Rs. 10 billion. This debenture issue has four types. Two are three year tenures and the balance two and five year tenures. During the day 146.6 million share volumes changed hands in 22409 transactions.