NFOs Pass Rs 1 Billion

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The bourse suffered net foreign outflows (NFOs) for the fifth consecutive market day to yesterday (8th), taking such NFOs pass the
Rs one billion mark (Rs 1,045.9 billion) as panicky foreign investors continued to exit from the bourse due to sustained uncertainty. The last time the bourse suffered NFOs for at least five consecutive market days was 48 days ago where it suffered NFOs for six consecutive market days to 21 June 2022.

As a consolation, the bourse  gained for the eighth consecutive market day to yesterday,  with yesterday’s gains over that of Friday’s being the ASPI increasing by 1.08 per cent to 8,422.97 points and the S&P SL 20 Index by 2.42 per cent to 2,794,15 points on a Rs 3.33 billion turnover. This is the first time for the year that the bourse has made gains for eight consecutive market days.

Also, this is the first time after five months that the bourse has made daily turnovers of over Rs three billion for three consecutive market days to yesterday, with Friday’s (5 August) turnover being Rs 3.75 billion and that of the previous day Thursday being Rs 3.80 billion. The last time prior to yesterday that the bourse made over Rs three billion in turnover for three consecutive market days were on  4 March, 7 March and 8 March, with daily turnovers of Rs 3.02 billion, Rs 3.52 billion and Rs 3.48 billion, respectively.  Meanwhile, the total number of shares that changed hands yesterday was 85.62 million.

“Spot” Unchanged 26th Day

The benchmark, albeit administered market “spot” closed unchanged for the twenty sixth consecutive market day at Rs 360/364 to the US dollar in two way quotes to yesterday (Monday, 8 August), market sources told “Finance Today.”

Yesterday, the administered market “spot” was down by between 78.22-79.31 per cent (Rs 158-161) year on year (YoY); thereby causing cost push inflationary pressure as Sri Lanka is an import dependent economy, they said.

The band in which the “guided market ‘spot’” may currently operate is fixed at +/- three per cent of the officially administered “spot” value, where the latter is applicable for transactions involving the GoSL, CBSL and or between the GoSL and/or CBSL with the market, which was fixed at Rs 360.80 to the dollar yesterday.

They further said that trades in the administered market “spot” (Rs 360/364) yesterday were mainly restricted to “bank-client” outright trades, while the interbank foreign exchange (FX) market was however dominated by swaps, which were outside the domain of the FX market for this purpose.

In like developments, the administered “spot” for official purposes, such as for trades involving CBSL, GoSL and/or CBSL, GoSL and the market, YoY to   yesterday has depreciated by  80.49 per cent (Rs 160.90).

Yesterday, the value of this official administered “spot” was fixed at Rs 360.80 to the dollar, while a year ago it was Rs 199.90. Meanwhile,  the straitjacketed, inflexible administered market “spot” a year ago was fixed at Rs 202/203 to the dollar in two way quotes, unchanged for the twenty first consecutive market day to Friday 6 August 2021. 

By Paneetha Ameresekere