Colombo shares saw foreigners on a buying spree on two days this week, despite the bad sentiment after Easter Sunday attacks with analysts saying that foreign buyers see the value in purchasing blue chips at this time.
Wednesday and Thursday foreigners were net buyers. Wednesday saw Rs. 1.3 billion net buying followed by Thursday’s Rs. 286 million trading centred around John Keells Holdings (JKH) and Commercial Bank. JKH on Wednesday added 88 per cent of the total trading on the Colombo Stock Exchange (CSE). On Thursday it was Commercial Bank and JKH which saw 87 per cent total trading turnover with both indices gaining. Friday saw less than 2 per cent foreign participation with locals buying Sampath Bank shares. On Friday foreigners were net sellers at Rs. 4.48 million. Analysts said foreign buying will continue to the next week. “Foreigners see that CSE valuations are really attractive now and they are on a buying spree,” Atchuthan Srirangan, Assistant Manager Research Fixed Income and Equity, First Capital holdings told the Business Times.
The CSE was closed on Monday after a curfew was imposed in the country on Sunday, following the attacks. Tuesday, when it reopened, was however the worst day for the CSE since February 16, 2012, when the petrol price increase happened. The All Share Index was up by 0.25 per cent to close at 5, 437.06 with S & P gaining by 0.37 per cent to close at 2, 600.76 on a Rs. 162.8 million turnover.
First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.
First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research delivers a heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka.