Colombo stock market gains momentum with first ever net foreign inflow of 2024 

February 24, Colombo (LNW): Sri Lanka shares closed up on a new high on Thursday after buying interest was stimulated through senses of economic stabilization, while the market generated a first ever net foreign inflow for 2024. 

The economy has channeled some stability and some recovery, resulting in buying power for the banking sector, capital, food and tourism sector,” an analyst said.

The Colombo stock market its first ever net foreign inflow for 2024 as it ended a shortened week marginally higher, CSE sources said.

Upto Wednesday, CSE had seen net foreign outflow of Rs. 3.3 billion and yesterday net inflow amounted to Rs. 211.6 million with net foreign buying most in JKH at Rs. 365.7 million.

First Capital said foreign investors turning net buyers on Thursdy was after nearly 2 months.

The lack of net foreign inflow year to date until Wednesday was of concern to stock broking firms and capital market promoters. Last year the Colombo Stock Exchange saw net foreign inflow Rs. 4.3 billion though it ended December with a net outflow of Rs. 653.4 million.

At present the Market P/E is 10.64 times which is considered attractive whilst several counters in CSE such as from the banking sector are trading below book value.

For the week the benchmark ASPI gained by 0.7% and the active S&P SL20 by 0.5%. Average daily turnover was Rs. 971 million. Last week ASPI and the S&P SL20 gained 0.2% and 0.7% respectively recording an average daily turnover of Rs. 862 million.

Asia Securities said the ASPI bounced back from its intra-day losses to end slightly up on Thursday, driven by increased market participation and a subsequent surge in turnover.

JKH dominated turnover during the session (Rs. 572 million) amidst a notable pick-up in buying interest.

First Capital said the bourse experienced a volatile session …read more

Source:: LNW English