“Profit Taking” Hits Bourse

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The ASPI fell by 0.35 per cent to 10,025.40 points and the S&P SL 20 Index by 0.60 per cent to 3,217.74 points yesterday due to profit taking.

Nonetheless, the bourse enjoyed net foreign inflows (NFIs for) the sixth consecutive market day with  yesterday’s  figure being Rs 37.1 million, thereby increasing NFIs in the calendar year to date to Rs 6,504.6 million. The last time prior to yesterday the bourse enjoyed NFIs for at least six consecutive market days was 14 calendar days ago, where for 15 consecutive market days, from 16 August 2022 to 5 September 2022, the bourse enjoyed consecutive NFIs. Meanwhile, prior to yesterday, the last time the ASPI made a higher figure than 10,025.40 points which took place nearly six months ago on 28 March 2022 with a value of 10,142.29 points and the S&P SL 20 Index, a day later, on 29 March 2022, with a value of 3,338.03 points, respectively. Nevertheless, the bourse made a turnover of a mere Rs 3.34 billion yesterday, the lowest after 20 calendar days.  A lower turnover figure than this the bourse last made was on 30 August 2022 with a value of Rs 1.89 billion. The number of shares which changed hands yesterday was 103.33 million.

“Spot” Unchanged 55th Day

The “spot” closed unchanged for the fifty -fifth consecutive market day at Rs 360/364 to the US dollar in two way quotes yesterday, 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 362.90 to the dollar, while a year ago it was fixed at Rs 200, down 81.45 per cent (Rs 162.90), 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, unchanged for the  eighth consecutive market day to Friday  17 September 2021.

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 362.90 to the dollar  on Friday.

They further said that trades in the administered market “spot” (Rs 360/364) on Friday 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.

 “Spot” trades are settled after two market days from the date of transaction. CBSL, the steward of GoSL debt and of its foreign reserves also deals in “spot.”

By Paneetha Ameresekere