brand logo

CSE sees Rs. 114 m foreign outflow despite relatively better day

13 May 2020

- Watawala Plantations accounts for 82% of turnover - Foreigners sell Sampath, Commercial and JKH shares By Madhusha Thavapalakumar The Colombo Stock Exchange (CSE) recorded a net foreign outflow of more than Rs. 114 million yesterday (Tuesday. 12), with the pent-up selling pressure created by a seven-week closure of the market being released over a 90-minute trading period, although the market overall fared relatively better than it did the day before (Monday, 11). Foreigners sold stocks worth over Rs. 217 million in this period, but foreign buying worth over Rs. 103 million trimmed the losses. Domestic investors made purchases worth over Rs. 3.5 billion but also sold stocks worth over Rs. 3.4 billion. The CSE had suffered a net foreign outflow of Rs. 473 million in the five-and-a-half days the market was open before it was shut down for a seven-week period on 20 March. If yesterday's trend continues, this week’s figure is likely to surpass that of that week. The S&P SL20 Index, which contains the 20 largest listed companies, was down 4.26% or 75.08 points to 1,685.45 points. This was somewhat of an improvement from Monday’s performance where it dropped 9.60% within 30 or 40 seconds to bring the market to a halt and then a close due to the new circuit breaker at the CSE. The All Share Price Index (ASPI) fared similar to Monday, falling 144.48 points or 3.29% to 4,247.95 points. As would be expected with the longer trading period, the day’s turnover was far higher than the meagre Rs. 24.8 million of Monday, at over Rs. 3.4 billion. More than 82% of this turnover came from an internal transaction of Watawala Plantations, and the company topped the market in both the turnover and volume fronts as a result of this transaction. This resulted in Watawala’s holding company, Sunshine Holdings PLC, increasing exposure to its branded tea business and trimming its stake in its palm oil and dairy businesses. Sampath Bank, Commercial Bank, and John Keells Holdings accounted for 35% of yesterday’s turnover, excluding the Watawala deal, owing to the heavy foreign outflow witnessed on these counters. Overall, the market lost Rs. 67.2 billion in value yesterday, but this was a massive improvement from a “loss per minute” standpoint, as it shed Rs. 83.4 billion in value in the fleeting moment the trading was open on Monday. Despite fears of a repeat performance of Monday, the new circuit breaker was triggered only once yesterday, which was within the first 15 minutes of trading. Following the resumption after a 30-minute halt in trading, the circuit breaker played no further part.


More News..