Year-to-date net foreign inflow Rs. 10 billion; CSE indices up

By Hiran H.Senewiratne

The year-to-date net foreign inflow to the CSE rose to Rs. 10 billion, largely driven by Japan’s SG Holdings buying into Sri Lanka’s most valuable blue chip Expolanka Holdings PLC.

According to stock market analysts, the previous day’s net inflow was Rs. 9.97 billion with September alone so far contributing Rs. 9.4 billion. The near Rs. 10 billion mark was boosted by an infusion of Rs. 2.4 billion on the previous day. In September so far foreign buying into Expolanka Holdings amounts to Rs. 10.5 billion.

This is the first time in four years that the CSE has seen a net foreign inflow. Last year net foreign outflow was Rs. 53 billion and in 2020 it was Rs. 51 billion and Rs. 11.7 billion and Rs. 23 billion respectively in the preceding years.

CSE shares moved up in mid-morning trade in the last half hour yesterday, recovering marginally from a three-session fall. The stock market slightly recovered in the last half hour because India said yesterday it had begun talks with Sri Lanka on restructuring its debt and promised to support the crisis-hit neighbour mainly through long-term investments after providing nearly US $4 billion in financial aid.

Amid those developments both indices moved upwards. The All- Share Price Index went up by 12.1 points and the S and P SL20 index rose by 31.3 points. Turnover stood at Rs 4.6 billion with three crossings. Those crossings were reported in Expolanka Holdings, which crossed 4.1 million shares to the tune of Rs 934 million and its shares traded at Rs 228, Lanka IOC 257,000 shares crossed to the tune of Rs 70.5 million, its shares traded at Rs 282 and CIC Holdings 750,000 shares crossed to the tune of Rs 67.5 million, its share price was Rs 90.

In the retail market top seven companies that mainly contributed to the turnover were, Lanka IOC Rs 734 million (2.5 million shares traded), ACL Cables Rs 330 million (three million shares traded), Expolanka Holdings Rs 274 million (1.2 million shares traded), Print Care Rs 151 million (1.8 million shares traded), Hayleys Rs 124 million (1.3 million shares traded), Lankem Development Rs 114 million (3.2 million shares traded) and First Capital Treasuries Rs 89.6 million (4.4 million shares traded). During the day 112 million share volumes changed hands in 36000.

Yesterday the Central Bank-announced US dollar buying rate was Rs 359.18 and the selling rate Rs. 369.94. However, Sri Lanka’s inflation increased to 70.2 per cent in August from 66.7 per cent in July. The year- on -year food inflation was 84.6 per cent in August compared to 82.5 per cent in July this year, Census and Statistics Department sources said.