Thursday, November 1, 2012

Net foreign inflow tops Rs. 34 b

howing persistent confidence in select Lankan equities and future returns from them, net foreign inflow yesterday crossed the Rs. 34 billion mark.

 Foreigners yesterday bought Rs. 171 million worth of shares and sold only Rs. 7 million resulting in a net inflow of Rs. 164 million. The inflow brought the year to date net foreign inflow to Rs. 34.1 billion by yesterday.

As continuously emphasised by the Daily FT, foreign investors see what most weak-hearted locals don’t. Negative mindset has swelled benchmark ASI’s year to date dip to 9% after the market earlier on had reduced it to below 2% by end September from a high 20% in mid-July.  However since mid July, net foreign inflow has been over Rs. 11 billion.

 The record inflow remains the most emphatic and credible achievement of the Colombo Bourse this year. The inflow is significant in the context of Rs. 19 billion outflow last year on top of Rs. 27 billion flight in 2010.

This week foreign investors have narrowed their pick on Chevron Lubricants and JKH.

 Yesterday stocks fell to their lowest level in nearly eight weeks as investors settled month-end positions, while others held off bets until next week’s Budget and corporate earnings.

 The rupee edged down on importers’ demand for dollars, dealers said.

 The Colombo Stock Exchange’s main index fell 0.13% or 6.98 points, to end at 5,513.64, its lowest since 7 September.

“The market was down as it is the month end and many local investors are looking for direction, with the budget on the corner,” said a stockbroker who declined to be identified.

 The Government will present the 2013 Budget on 8 November while several companies will release quarterly results next week.

 Turnover on the Sri Lanka exchange was Rs. 477.2 million ($ 3.68 million), half of this year’s daily average of Rs. 925 million.

 The rupee ended weaker at 130.20/25 to the dollar from Tuesday’s close of 130.15/25.

source - www.ft.lk

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