Foreigners become strong on the buying side……
Posted on the October 17th, 2011 under Market Reports by Asia Wealth Management 
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The Colombo bourse predominantly remained in the red during the four day of trading pushing both indices further
into the negative territory, The benchmark All Share Index dipped 148.9 points WoW to close at 6,549.9 points (-
2.2%), whilst the more liquid Milanka Price Index also dipped 99.8 points WoW to close at 5,878.3 points (-1.7%). The
All Share Index dipped mainly on the back of the losses made by Asian Alliance Insurance (-27.4% WoW), Sri Lanka
Telecom (-3.1% WoW), Laughs Gas (-16.6% WoW), Dialog Axiata (-3.6% WoW), Aitken Spence (-4.2% WoW) and
John Keells Holdings (-1.2% WoW).
Week initiated its trading with both the ASI and MPI dipping 29.8 points and 42.2 points respectively. Turnover levels
were predominantly dominated by few large scale transactions. The weekly trading witnessed foreign investors
eyeing fundamentally strong stocks, especially heavy weight John Keells Holdings where a London based fund has
been buying the shares bringing the total foreign buying to exceed 3 million shares. This brought about renewed
optimism in the market performance. Further Laughs gas topped the weekly turnover list where the Sri Lanka’s
biggest fund EPF bought 8% stake for LKR1.6 billion increasing the total holding up to 14%.In addition Soft Logic
Holding gave a convincing contribution being aided by institutional investors where the counter witnessed a massive
crossing of 15,710K during Wednesday.
Focusing on the share volumes, high volume contributors for the week were Laughs Gas, Blue Diamonds (Non
Voting), Soft Logic Holdings, Renuka Agri and Seylan Merchant Bank (W15)
Further Peoples Leasing IPO will open for subscription on November 3rd where the company plans to raise LKR7
billion issuing 390 million shares at LKR18.0. In addition a 10% price band was imposed upon Ceylon Foreign Trades
from 4th to 10th October.
The market witnessed mediocre activity levels during the week ended, recording an average daily turnover of
LKR1.7bn, together with an average volume of circa 245.5mn.
Foreign participation witnessed a staggering inflow of circa LKR1.2bn mainly due to foreign buying of John Keells
Holdings whilst the foreign sales amounted to LKR620.8mn, resulting a net foreign inflow of LKR592.6mn.
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