Sri Lanka stocks recover from over five-week low on bargain hunting
ECONOMYNEXT – Sri Lanka stocks closed steady on Wednesday (05) for the first time in five sessions after plunged in the last two sessions as investors bought some beaten down shares in bargain hunting, dealers said.
The main All Share Price Index (ASPI) was up 0.89 percent or 81.96 points to close at 9,319.01, recovering from its lowest close since August 31 hit in the previous session. The index lost over 7 percent in the last four sessions.
“…market bounced back with the index opening on an upbeat note…as investors collected on beaten-down stocks,” First Capital Market Research said in its daily market note.
In the last four sessions, the ASPI nose-dived as the market heavyweight Expolanka saw selling pressure over falling global freight prices and slow down in foreign buying.
Meanwhile, dealers said that the market had a correction as it crossed the 10,000 benchmarks.
The most liquid index S&P SL20 closed at 0.4 percent or 12.4 points up at 2,887.67.
The market saw a turnover of 2.6 billion rupees, lower than this year’s average turnover of 3.2 billion rupees.
The bourse saw a net foreign inflow of 12 million rupees on Wednesday. The inflow so far this year is 15.3 billion rupees after 16.7 billion rupees of net offshore buying in the last 37 consecutive sessions amid positive sentiment over an IMF deal.
The market saw its highest monthly net foreign inflows into stock market last month in more than 10 years as some foreigners converted their dividend payment into risky assets because they could not get dollars to repatriate due to forex crisis.
The island nation’s 4.1 trillion worth stock market saw 14.7 billion rupees ($40.8 million) net foreign
inflow in September, its highest since March 2012.
The index has lost 23.7 percent so far this year after being one of the world’s best stock markets with an 80 percent return last year when large volumes of money were printed.
Sampath Bank closed 2.4 percent higher at 39.1 rupees a share.
Lanka IOC closed 1.8 percent up at 240.5 rupees and Ambeon Holdings ended 16 percent
higher at 47.6 rupees a share. (Colombo/Oct05/2022)
