Saturday 23 December 2017

Colombo bourse down for seventh week running, turnover too slumps

Markets continued to record week-on-week losses for the seventh consecutive week as dull sentiment dominated ahead of the holiday weekend, Acuity Stockbrokers said in their Stock Market Weekly.

"The broad-share price Index fell to an eight-month low of 6,321.36 points on Wednesday, before recovering marginally higher by 2.4 points to close above the Index’s previous low of 6,305.54 in mid-April," the report said..

Turnover levels too declined significantly, falling ~51% W-o-W to average Rs. 0.35 daily. This contrasts to the daily average turnover levels of Rs. 0.71Bn the previous week and the year-to-date average of Rs. 0.93Bn. Lower high netr worth investor and institutional participation contributed to the low daily turnover levels, with just 40% of crossings recorded over the week, Acuity noted.

Crossings were concentrated on just three stocks - Hemas, HNB and DFCC with DFCC accounting for the dominant share of the week’s crossings (85%).

The report said that the Colombo Bourse also managed to find some support from last week’s recovery in foreign appetite for domestic equities. Although notably lower than this year’s average weekly net foreign inflows of Rs.0.36Bn, net foreign inflows last week totaled Rs. 0.05Bn, up from the net outflow of Rs. 0.07Bn recorded the previous week.

The report said that markets in the holiday-shortened week ahead are likely to retain the current dull sentiment although some cues over market direction are likely to stem from next week’s monetary policy meeting on Thursday.
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