Foreigners see value in Colombo stocks
View(s):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. (DEC)