Foreign outflow from the CSE $ 10mn on the day, $ 50mn for 2018

October 15, 2018 (LBO) - Foreign outflow out of the Sri Lankan stock market topped Rs1.7bn (US$10mn) on the day as the former owner of Singer Sri Lanka (SINS) disposed of their last 9.47% stake in the company. The buyer was highly leveraged Hayleys (HAYL) who bought control of the CSE listed Sri Lankan retailer a few months back. The price of the transaction was Rs47/share, but shares quickly returned to yesterdays trading price of around Rs30/share. Stocks were down on the day with the ASPI and the S&P SL 20 down .7% and 1.27%  respectively. The S&P SL 20 has had a difficult year, down over 20% for 2018. Total foreign outflow out of the CSE for 2018 is now around Rs8.3bn (US$50mn). John Keells Holdings (JKH) and bank stocks were weak on the day.  Particularly weak was NDB which close around 99/share. NDB just recently concluded an undersubscribed rights issue where they raised Rs3.8bn at 105/share. Sri Lanka just sent a contingent to the UK on a stock market promotion tour. Some analysts say the timing of the junket was poor, due to the weak appetite for emerging market equities at the given time.