Net foreign inflows to the Colombo stock market have crossed the Rs. 28 billion mark year to date, reinforcing growing confidence by non-nationals.
It was the second time in the history of CSE that the Rs. 28-billion mark was surpassed. The first time was in 2012.
The record net inflows so far this year is a phenomenal achievement considering the fact that last year the figure was only Rs. 400 million whilst in 2015 there was a net outflow of Rs. 5.4 billion.
The surpassing of the Rs. 28-billion mark too was within three months since as of 9 June the year to date inflow was Rs. 20.3 billion. Total year to date net foreign inflow for both the primary and secondary market amounted to Rs. 40.6 billion, as against Rs. 2.2 billion last year, and an outflow of Rs. 5.4 billion in 2015 and a net inflow of Rs. 21.7 billion in 2014.
The all time high net foreign inflow is Rs. 38.6 billion achieved in the Bull-run 2012.
Capital market analysts opined sustained foreign craving for listed Lankan equities continue to expose the fickle ‘wait and see’ attitude and relatively low confidence on the part of locals.
However, some analysts have been heartened by a renewal in local interest following the decision by the Finance Ministry not to impose additional taxation on share trading though foreign optimism far outweighs that of Lankans. Turnover however hit a five and half month low of Rs. 210 million yesterday.