Net foreign outflows within first 15 days of New Year hit Rs. 1 billion

By Hiran H.Senewiratne

The Colombo bourse continued on its negative run yesterday as net foreign outflows crossed the Rs. 1 billion mark in less than 15 market days in the New Year. The reason for the selling pressure was the belief that upcoming corporate earnings are not likely to be favourable, market analysts said.

Amid those developments both indices move downwards. The All- Share Price Index went down by 65.6 points and S and P SL20 declined by 22.3 points.

Turnover stood at Rs 802 million without any crossings. In the retail market top seven companies that mainly contributed to the turnover were; Ceylinco Insurance (Non- Voting) Rs 294 million (377,000 shares traded), JKH Rs 68.9 million (372,000 shares traded), Capital Alliance Rs. 9 million (1.1 million shares traded), Browns Investments Rs 40 million (9 million shares traded), Expolanka Holdings Rs 38.7 million (278,000 shares traded), TJLanka Rs 20.6 million (550,000 shares traded) and Associated Motor Finance Rs 20.2 million (994,000 shares traded). During the day 31.6 million share volumes changed hands in 9300 transactions.

It is said that the Insurance sector was the top contributor to the market turnover (due to Ceylinco Insurance (Non- Voting), while the sector index lost 0.67 points. The share price of Ceylinco Insurance (Non- Voting) decreased by Rs. 20 to Rs. 800.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp), while the sector index decreased and share price of Melstacorp lost Rs. 3.20 to settle at Rs. 85.

Capital Alliance, JKH and Browns Investments were also included among the top turnover contributors. The share price of Capital Alliance moved down by 40 cents to touch Rs. 53.20.

Yesterday, the US dollar buying rate was Rs 316.78 and selling rate Rs326.43.