Market turnover narrowed down further denoting a more subdued sentiment. Overall MPI has been on a continuous struggle further dampening investor sentiment as well as the prospects of a more credible recovery in the Colombo Stock Exchange. Due to the burden of high debtors which resulted in forced selling by brokers, the overall weekly performance was negative. Colombo Stock Market continued to lose ground amidst persisting selling pressure to meet regulatory clearing and investments in primary market.
The active play by select state funds such as the EPF dominated the buying side of the week.
Foreign investors were on the selling side during the week creating a net outflow of Rs.1.01 Bn. Foreign sales for the week stood at Rs.1360.43 Mn while foreign purchases were Rs.349.45 Mn
The turnover for the week was Rs.10.46 Bn with 387.49 Mn shares changing hands. The average daily turnover stood at Rs.2.09 Bn.
The benchmark ASPI plunged 47.85 points WoW to close at 6844.71 points, while the MPI plunged 94.87 points Wow ending at 6344.43.
Retail investors are advised to look at fundamentally strong stocks. Investors should minimize their search on low and mid cap speculative counters due to the high adverse risks. This can create a negative sentiment on the potential and incumbent investors about the Colombo Stock market. Liquidity is expected to improve mid-July with the help of IPO refunds flowing back into the market.