NFIs in to the bourse was due to a NFI of Rs 2.7 billion enjoyed by Ceylinco Insurance on Thursday (14 May), whereas NFOs suffered by the T-Bill and T-Bond market are attributed to political uncertainty caused by a transitionary government in power! Nevertheless, in the previous week, ie in the week ended Friday, 8 May 2015, the stock market suffered a NFO of Rs 676 million. However, in the calendar year to date the stock market has enjoyed a NFI of Rs 6.1 billion.
Despite hefty gains in NFIs in the week ended Friday, 15 May (499% increase week on week (WoW)), the benchmark ASPI however marginally increased by 0.64% to 7,258.67 points; whereas the more sensitive S&P SL 20 Index declined by 0.2% to 4,050.68 points in the review period. Lack of sustained inflows is attributed to this hiatus.
Further, despite trading in the previous week restricted to only four working days because Monday, 4 May 2015 was a holiday on account of Vesak, average daily share volumes traded in the review week however, ie in the week ended Friday, 15 May, 2015 declined by 9.75 million or by 20.9% WoW to 37 million.
Nevertheless, daily average turnover, because of the Ceylinco Insurance transaction, increased by 61.2% or by Rs 703.9 million WoW to Rs 1.9 billion.
Courtesy: Ceylon Financial Times 18 May 2015