Sri Lanka, Oct 05 (Insights Equity) – The Colombo Stock Exchange (CSE) this week made gains for the first time after three weeks of consecutive losses as shares recorded three straight sessions of gains during the week following the decision by the Central Bank of Sri Lanka (CBSL) to keep key policy rates unchanged.
ASPI gains ground edging up 0.37 percent: The All Share Price Index (ASPI) gained 21.59 points, 0.37 percent higher than the previous week, to close the week at 5,833.77 points, its highest close in six sessions.
The index posted three consecutive sessions of gains following the decision by the country’s Central Bank on Tuesday to keep key policy rates, Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) unchanged at 7.25 percent and 8.50 percent respectively.
Meanwhile, S&P SL20 index, which tracks the largest and most liquid stocks, edged up 8.60 points during the week, to stand at 3,010.6 points on Friday, 0.29 percent higher than the week before.
Turnover up 22 percent: The weekly turnover improved 22 percent from the holiday-shortened previous week to reach LKR2.0 bn (USD12.0 mn), well-below the year-to-date average weekly turnover of LKR3.7 bn (USD21.6 mn) as off-board transactions made up 48 percent of turnover compared to 12 percent in the week before. Meanwhile, the number of shares transacted stood at 75.2 mn, a 45 percent increase from the previous week.
Net foreign selling continues amid renewed local investor interest: Overseas investors sold net LKR308.9 mn (USD1.8 mn) worth of shares over the week as local investor interest was witnessed in John Keels Holdings (JKH), Commercial Bank (COMB) and Sampath Bank (SAMP).
The market witnessed the thirteenth consecutive session of net foreign outflow on Friday when the year-to-date net foreign outflow reached LKR6.5 bn (USD38.0 mn).
JKH gains close to 2 percent; makes up more than half of weekly turnover: Gaining nearly 2 percent during the week, JKH led the weekly turnover generation with a contribution of 51 percent as the stock made up 84 percent of daily turnover on Wednesday.
Meanwhile, COMB and SAMP which gained 0.4 percent and 0.3 percent respectively made up 13 percent of weekly turnover collectively.
Furthermore, Stocks in the diversified sector gained 0.8 percent overall during the week, leading the weekly turnover generation with a 55 percent of contribution, while banks, finance and insurance sector, posting a weekly gain of 0.2 percent, followed up with 27 percent.