(Island) Stock market hit by fears over steady FDI inflows

By Hiran H.Senewiratne

 

The government will have to go for alternative funding mechanisms to pay its huge public debt next year as the total inflow of foreign direct investment to the country from the  Hambantota port deal with China is likely to get delayed, market sources said. According to the  Minister of Development Strategies and International Trade Malik Samarawickrama the Hambantota Port development project will bring in an FDI inflow of US$ 1.12 billion.

‘But the government initially received an immediate advance payment of 30 percent and  the balance is to be received within 6 months, market analysts said.

Meanwhile, the CSE performance became sluggish with the recording of a  low turnover of Rs. 282.21 million and both indices indicated a downward trend; ie, the All Share Price Index went down by 17.8 points and  S and P SL20 by 17.3 points. With these developments there seemed to be foreign selling of JKH shares yesterday.

During the day two crossings took-place; those were, Hemas Holdings 323,000 shares crossed to the tune of Rs. 41.9 million at a per share value of Rs. 129.90, and TJL 600,000 shares crossed for Rs 21.6 million at a per share value of Rs. 36. In the retail market, companies that mainly contributed to the day’s turnover were: JKH Rs. 53.65 million (350,000 shares traded), Commercial Bank Rs. 24.74 million (154,000 shares traded) and Cargills Rs. 24.44 million (102,000 shares traded) During the day 10.1 million share volumes traded in 2474 transactions.

 

Meanwhile, JKSB reported –

ASPI: 6,357.41 (-17.80 pts; -0.28%); Val T/O: Rs. 282mn (US$1.84mn); Vol T/O: 10.1mn; Trades: 2,474

Advance/decline ratio: 57/98; Top gainer: MSL.N (+15.38%) ; Top loser: GOOD.N (-22.58%)

 

Highlights:

• The ASPI ended lower amid weak turnover levels. JKH, HHL, and TJL led activity levels including crossings. Trading in JKH amounted to 19% of total turnover.

• Diversified Holdings was the most actively traded sector (-0.67%)

• Footwear & Textiles was the best performing sector (+3.59%),
supported by gains on ODEL (+6.80%)

• Healthcare was the worst performing sector (-2.70%), dragged down by declines on ASIR (-2.75%)

 

Source: The Island

Image Courtesy: zambiainvest.com