Foreign investor confidence at two-year high

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Foreign investor confidence in the Bourse bloomed after a lapse of nearly two calendar years when the Bourse enjoyed its largest net foreign inflow (NFI) figure, a value of Rs 2.30 billion at yesterday’s trading, upping NFIs in the calendar year to date to
Rs 2,842.1 million (Rs 2.8 billion).

Consequently, the ASPI gained by 1.25 per cent to 9,447.27 points and the S&P SL 20 Index by 0.66 per cent to 3,017.97 points on a turnover Rs 6.08 billion yesterday. The Bourse in the six markets days to yesterday has made consecutive daily turnovers of Rs four billion. The last time prior to yesterday that the bourse made daily turnovers of over Rs four billion for at least six consecutive market days was more than seven months ago, where from the calendar dates spanning from 27 December 2021 to 9 February 2022, which era covered 30 consecutive market days, the bourse, backed by a low interest rate regime, made daily turnovers of over Rs four billion in the review period.

Prior to yesterday, the highest figure the ASPI made was over five months ago on 29 March with a value of 9.647.55 points. Also, prior to yesterday, the highest figure that the S&P SL 20 Index made was 23 days ago on 15 August with a value of 3,097.30 points.

‘Spot’ Unchanged 47th Day

The ‘spot’ closed unchanged for the forty seventh consecutive market day at Rs 360/364 to the US dollar in two way quotes to yesterday (Wednesday 7 September), market sources told ‘Finance Today’. Consequently yesterday, the administered market ‘spot’ was down by between 80-79.31 per cent (Rs 160-161), year-on-year (YoY); thereby causing cost push inflationary pressure as Sri Lanka is an import dependent economy, they said.

 Meanwhile, yesterday, the value of this official administered ‘spot’ was fixed at Rs 361.81 to the dollar, while a year ago it was fixed at Rs 207.35, down 74.49 per cent (Rs 154.46), YoY. In related developments,  the straitjacketed, inflexible administered market ‘spot’ a year ago was fixed at Rs 200/203 to the dollar in two way quotes.

By Paneetha Ameresekere