Rs. 682 million net foreign outflow from CSE for June thus far

By Hiran H.Senewiratne

The CSE has witnessed Rs. 700 million worth net foreign selling in the first eight days of June. In the past four consecutive market days, the net outflow was Rs. 678 million, while so far for June the figure is Rs. 682 million, stock market analysts said.

Despite the heightened foreign selling, the CSE still reports Rs. 678 million in net foreign buying year- to- date, down from Rs. 1.4 billion as at end May and Rs. 4.4 billion in mid-February. Last year, net foreign inflow to CSE hit a 10 year high of Rs. 30.6 billion, market analysts added.

Amid those developments the stock market was positive yesterday, due to positive attitudes to Sri Lanka from foreign creditors, including the Paris Club and Non Paris Club. Consequently, both indices moved upwards. The All- Share Price Index went up by 54.8 points and S and P SL20 rose by 35.6 points. Turnover stood at Rs 1.5 billion with four crossings. Those crossings were reported in HNB, where one million shares crossed for Rs 130 million, its shares traded at Rs 130, Sampath Bank 1.8 million shares crossed to the tune of Rs 91.8 million, its shares traded at Rs 51, JKH 250,000 shares crossed to the tune of Rs 35.4 million, its shares traded at Rs 141.50 and Access Engineering 2.1 million shares crossed for Rs 31.9 million and its shares fetched Rs 15.20.

In the retail market top seven companies that mainly contributed to the turnover were; LOLC Finance Rs 151 million (25.9 million shares traded), CIC Holdings Rs 144.2 million (2.3 million shares traded), HNB Rs 84.9 million (632,000 shares traded), Sampath Bank Rs 78.8 million (1.5 million shares traded), Softlogic Rs 58.6 million (6.4 million shares traded), Browns Investments Rs 57.2 million (10 million shares traded) and Agstar PLC Rs 44.2 million (4.1 million shares traded). During the day 116.7 million share volumes changed hands in 16000 transactions.

It is said that high net worth and institutional investor participation was noted in Vallibel Finance, Union Bank, and JKH. Mixed interest was observed in LOLC Finance, CIC Holdings and Hayleys, while retail interest was noted in Browns Investments, Softlogic Capital and Nation Lanka Finance.

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Finance and Vallibel Finance) while the sector index gained 4.14 percent. The share price of LOLC Finance increased by 40 cents to Rs. 5.50. The share price of Vallibel Finance moved up by Rs. 1.60 to Rs. 32.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) while the sector index increased by 1.52 percent. Yesterday, the Central Bank’s US dollar buying rate was Rs 294.91 and selling rate Rs 309.22.