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Bourse lures back Rs. 1 b net foreign inflow

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Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

Bourse down marginally, rupee gains

The Colombo bourse continued to decline yesterday (05) driven by macroeconomic uncertainty and negative investor sentiments, brokers said, although foreign investors continued to be active with a year-to-date inflow of Rs. 2 billion.

The All Share Price Index fell a marginal 0.09 percent, down 5.12 points to close at 5,626.77 while the S&P SL20 gained 0.16 percent, up 5.14 points to close at 3,208.92.

Turnover amounted to Rs. 602.8 million on a little more than 13.4 million shares changing hands during the day.

Foreign purchases amounted to Rs. 292.9 million, far outweighing sales, resulting in a net inflow of Rs. 281.95 million.

"The ASPI ended marginally lower amid subdued activity levels dominated by block trades on JKH and HNB, which collectively accounted for over 60% of market turnover," John Keells Stockbrokers said.

Brokers said macroeconomic uncertainty was affecting retail investor sentiments while foreign investors were picking up counters with strong fundamentals.

JKH saw over a million shares change hands during the day, closing 0.26 percent higher at Rs. 234.50.

HNB closed 0.60 percent higher at Rs. 150 after a little over 978 thousand shares changed hands.

Com Bank closed 0.33 percent higher at Rs. 92.10.

In financial markets, the rupee strengthened against the US dollar on Tuesday (05), closing at Rs. 127.38/42 against the greenback from an opening position of Rs. 127.49/53.

Secondary market Treasury bond yields edged up marginally on the longer tenure, on foreign selling dealers said.

The more liquid five year bond saw its yield move up to 11.15/17 percent yesterday from the previous day’s close of 11.10/15 percent.

Excess rupee liquidity in the financial market amounted to Rs. 38.75 billion yesterday (05).
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=74062

sriranga

sriranga
Co-Admin

Stock indices and local sentiments may be besieged, but the Colombo Bourse is luring back net foreign inflow.
This week so far, the CSE has seen over Rs. 1 billion in net inflow thanks to persistent bullishness by existing and new funds on select blue chips.

On Monday there was a net inflow of Rs. 858 million followed by Rs. 282 million yesterday, bringing the year-to-date figure back to positive territory of Rs. 0.4 billion in net inflow. A few weeks back there was an outflow of over Rs. 1 billion.

Softlogic Stockbrokers said the Colombo Bourse is currently witnessing a phase of stagnation as a result of macroeconomic uncertainty and negative investor sentiment clouding the direction of indices.

“It is notable that recent trend etched around prominence in banking and finance sector and a few selected large caps in specific dominating the market. The YTD net foreign outflow reversing justifies the confidence foreigners have placed on the Colombo Bourse, thereby picking on the attractively-priced companies with expected sustainable earnings growth potential. Local players in contrast are still bewildered by the downtrend with the echoing herd instinct. We reiterate pragmatic investors to step in at this point, thus not missing out the possibility of healthy returns stemming from a recovery,” Softlogic added.
http://www.ft.lk/2013/03/06/bourse-lures-back-rs-1-b-net-foreign-inflow/

http://sharemarket-srilanka.blogspot.co.uk/

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