Net foreign purchases of JKH stocks become highlight of CSE trading

By Hiran H.Senewiratne

CSE trading was characterized by a degree of dullness but foreign investor participation reached a satisfactory level, garnering a net foreign inflow of more than Rs 3 billion a- year- to- date, yesterday. Net foreign purchases for JKH stocks became notable during the last few days, stock market analysts said.

Stepped-up foreign investor participation in Sri Lanka’s stock trading was due to the rupee devaluation against the US dollar. In that context, local valuable stocks/ blue chip shares are cheap when compared to stocks in the region, analysts said.

However, investors are worried over domestic debt restructuring issues, these analysts added.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 23.89 points and S and P SL20 went down by 0.54 points. Turnover stood at Rs 1.4 billion with three crossings. Those crossings were reported in JKH, which crossed 710,000 shares to the tune of Rs 101.9 million, its shares traded at Rs 143.50, Lanka Wall Tiles 1.9 million shares crossed to the tune of Rs 99.9 million, its shares traded at Rs 53, Nations Trust Bank 351,000 shares crossed for Rs 20 million; its shares fetched Rs 57.

In the retail market top seven companies that mainly contributed to the turnover were, Softlogic Life Insurance Rs 186 million (1.4 million shares traded), Aitken Spence Rs 159 million (one million shares traded), TJ Lanka Rs 116 million (3.3 million shares traded), JKH Rs 106 million (702000 shares traded), Softlogic Capital Rs 78.4 million (4.8 million shares traded), Lanka IOC Rs 65 million (339,000 shares traded) and Expolanka Holdings Rs 57.2 million (310,000 shares traded). During the day 40.28 million share volumes changed hands in 13000 share transactions.

Sri Lanka still needs adequate assurances from other bilateral creditors for its program to be approved, especially China, the IMF said, after Paris Club lenders said they will restructure debt.

“We welcome the recent statement by the Paris Club to provide financing assurances to Sri Lanka following the assurances provided by India, an IMF spokesperson said.

“Sri Lanka continues to engage with official bilateral creditors to obtain financing assurances and also continues to advance domestic reforms. If the IMF bail- out is finalized the investor sentiment will improve, especially that of foreign investors, market analysts said.Yesterday, the Central Bank’s US dollar buying rate against the rupee was Rs 359,07 and the selling rate Rs 370.24