Shares slumped to an 11-week low on Wednesday on the back of concerns about the Super Gains Tax which was presented in Parliament through the new Finance Bill, Acuity Stockbrokers said in a market report.
"By Friday however, strong buying interest by high net worth investors (HNIs) and institutions helped the benchmark ASPI gain ground to close the week a marginal 0.07% lower W-o-W," it said.
"In contrast, volumes recorded a sharp increase during the week, surpassing LKR 1bn on four days, consequently bringing the daily average turnover value to LKR 1.43bn (27.71% higher than the Y-T-D average)."
The bulk of last week’s turnover value was generated through off-board block trades (63.0%) with large deals in particularly the Diversified, Banking & Finance and Manufacturing counters, the report said. Retail activity however is yet to pick up pace, dwindling further this week as investors await cues from the upcoming Budget in November.
Foreigners meanwhile, exited shares last week following three consecutive weeks of steady net inflows. Net outflows of LKR 0.63bn at the beginning of the week offset inflows over the remainder of the week resulting in a net outflow position of LKR 0.43bn.
The current market sentiment is likely to continue into the week ahead, Acuity concluded.
John Keells Stock Brokers said that the ASPI ended flat for the week amid healthy turnover levels. Trading in the diversified, banking, finance & insurance sectors accounted for a majority of turnover.
Active foreign participation amounted to 59% of the week’s turnover resulting in a net outflow of Rs. 425mn.
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