"Volumes which were firmly driven by foreign buying, pushed average turnover levels to Rs.0.8 billion (per trading day) relative to the year-to-date daily average of Rs.0.9 billion," the report said.
The market which moved up sharply on Wednesday held its ground on Thursday but declined on Friday without going below the 5,000 point resistance level.
The report noted that foreign investor participation continued to dominate market activity with net foreign inflows gaining 65% week-on-week following dealings in Asiri Central Hospitals PLC by private equity investor, Actis Investment Holdings SL Limited.
It projected that similar sentiment is likely to prevail this week too.
Acuity reported that macro-economic indicators were positive with the country’s trade deficit hitting a 16-month low in June according to official data.
It declined 33.4% since January as a result of 25.9% decline in import expenditure helping to offset a 17.8% decline in export income.
Inflows into the service account too had been strong with earnings from tourism increasing 24.3% year-on-year in the first half of this year and worker remittances rising 17.4% year-on-year.
The Acuity report said that inflows into the capital and finance accounts meanwhile had been positive amid increases in foreign direct investment and inflows into the CSE as well as inflows to both government securities and commercial banks.
The rupee had remained stable against the US dollar at Rs.132.35.
The Acuity weekly market review noted that foreign inflows into the stock market had continued with a net inflow of Rs.1.35 billion against the previous week’s Rs.819.2 million representing a growth of 65% week-on-week.
Total foreign purchases last week amounted to Rs.1.84 billion, up from Rs.1.15 billion a week earlier, representing a gain of 60.9% against foreign sales of Rs.491.9 million, up 55.5% from a week earlier.
Asiri Central and Lion Brewery led foreign purchases in terms of volume with Richard Pieris and Malwatte Valley Plantations leading foreign sales.
In value terms, Asiri Central and Lion Brewery led foreign purchases with Sampath Bank and Colombo Dockyard leading foreign sales.
All three indices gained week-on-week with the ASPI up 1.74% (85.71 points), the Milanka up 1.9% (86.51 points) and S&P up 1.31% (36.46 points).