Ceylon FT: The net foreign outflow from the country’s equity and government securities market topped Rs 14.25 billion last week after foreigners sold shares worth Rs 2.77 billion during the week, official data showed.
Net inflows to the government securities market continued to improve reaching Rs 871 million last week, but the heavy foreign selling in the stock market took the total net outflow from the equities and securities markets to Rs 14.25 billion since the first week of February 2013 when the US Fed trimmed down its stimulus programme and prompted outflows from emerging markets.
The lackluster earnings performance of listed companies in 2013 and sluggish private sector credit growth also lowered foreign sentiments, market analysts told Ceylon FT.
Economists said the strong 7.3% growth rate for 2013 was driven mostly by construction and government spending, and was not sustainable.
“We are not seeing private sector led growth and healthy exports growth. Foreign direct investments have been below potential as well, which means the environment is not yet conducive to drive sustainable real economic growth,” a dealer said not wanting to be named.
www.ceylontoday.lk
Net inflows to the government securities market continued to improve reaching Rs 871 million last week, but the heavy foreign selling in the stock market took the total net outflow from the equities and securities markets to Rs 14.25 billion since the first week of February 2013 when the US Fed trimmed down its stimulus programme and prompted outflows from emerging markets.
The lackluster earnings performance of listed companies in 2013 and sluggish private sector credit growth also lowered foreign sentiments, market analysts told Ceylon FT.
Economists said the strong 7.3% growth rate for 2013 was driven mostly by construction and government spending, and was not sustainable.
“We are not seeing private sector led growth and healthy exports growth. Foreign direct investments have been below potential as well, which means the environment is not yet conducive to drive sustainable real economic growth,” a dealer said not wanting to be named.
www.ceylontoday.lk
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