Friday Nov 15, 2024
Friday Nov 15, 2024
Friday, 5 January 2018 00:00 - - {{hitsCtrl.values.hits}}
Foreign investors are already busy collecting value stocks in the New Year with the first three market days triggering net buying of Rs. 1.6 billion.
Yesterday saw a net foreign inflow of Rs. 1.32 billion on the back of Rs. 102 million on the first market day followed by Rs. 190 million on the next day.
HNB saw net foreign buying of Rs. 1.08 billion yesterday followed by Rs. 111 million on Melstacorp. JKH saw Rs. 153 million worth of net foreign buying on Wednesday and Rs. 71 million on Tuesday. Yesterday’s figure was Rs. 91 million.
Brokers were heartened by bullish sentiments on the part of foreigners on Lankan equities. The encouraging net inflow this year comes on the back of Rs. 18.5 billion net buying in 2017 and Rs. 633 million in the previous year.
The overall market however yesterday was subdued. The Colombo Stock Index ended 0.06% weaker at 6,459.66, snapping an eight-session win streak.
Reuters said shares ended slightly weaker on Thursday amid heavy buying by foreign investors but traders said sentiment was likely to remain positive after the Central Bank kept key policy rates unchanged last week.
Shares in Ceylon Tobacco Company Plc fell 1.3%, while DFCC Bank Plc dropped 2.9%.
Losses were, however, capped by gains in Melstacorp Ltd, which climbed 1.9%, and conglomerate John Keells Holdings Plc, which rose 0.3%.
“The small volume of selling in CTC dragged the market down,” said Dimantha Mathew, head of research at First Capital Holdings.
“The positive trend due to declining market interest rates will continue.”
Turnover stood at Rs. 1.5 billion ($ 9.77 million), more than last year’s daily average of Rs. 915.3 million.
The index rose 2.26% in 2017, posting its first annual increase in three years. It fell 9.7% in 2016.
Since March 2017, Treasury bill rates have fallen between 188 and 216 basis points through end-December, mainly driven by foreign investors buying treasury bonds, resulting in declining market interest rates.
The country’s 2018 economic growth trajectory is likely to help boost market sentiment, analysts said.
Sri Lanka’s economic growth in 2018 is forecast at 5-5.5%, bouncing back from an anticipated four-year low of less than 4% last year, Central Bank Governor Indrajit Coomaraswamy said on Wednesday.
