One stock accounted for most of Friday’s foreign outflow from the Colombo Stock Exchange, even as it topped the day’s gainers and turnover
Shares of Standard Capital PLC (SING) jumped 21% on Friday, making it the Colombo Stock Exchange’s top gainer. It was also the largest single contributor to turnover, and foreign investors sold it heavily.
The counter traded LKR 157 million of shares, 18% of the day’s LKR 873 million turnover. Foreign investors were net sellers of LKR 116.3 million in the stock, which is about 83% of the market’s total net foreign outflow of LKR 140.2 million. The net foreign sale equalled roughly three-quarters of the stock’s turnover, so a large share of the trading in the counter was foreign selling.
The market data does not explain the price movement.
The pattern sets Friday apart from the market’s recent run of foreign selling. Over the month to date, net foreign outflows total LKR 234.4 million, so Friday’s selling in this one counter equals about half of that. Across the year to date, net foreign outflows stand at LKR 57.5 billion, which is spread across many counters and much larger days.
The broader market did not follow the stock higher. The All Share Price Index (ASPI) fell 0.33% to 20,812.64 and the S&P SL20 lost 0.31% to 5,883.50. Total turnover was about 41% below the monthly average of LKR 1.5 billion. On a thin day, one active stock can account for a large share of both market activity and foreign flows.
Foreign investors also sold National Development Bank (NDB), with a net outflow of LKR 55.3 million. Foreign buying was small by comparison. The largest net purchase was in Tap (TAP), at LKR 33.0 million.
Key Numbers
| Indicator | Friday |
|---|---|
| SING price change | +21% |
| SING turnover | LKR 157 Mn (18% of market) |
| SING net foreign flow | -LKR 116.3 Mn |
| SING share of net foreign outflow | About 83% |
| Total net foreign flow | -LKR 140.2 Mn |
| Net foreign flow, month to date | -LKR 234.4 Mn |
| Net foreign flow, year to date | -LKR 57.5 Bn |
| Market turnover | LKR 873.4 Mn |
| ASPI | 20,812.64 (-0.33%) |
Business Impact
Single-stock concentration affects how daily market statistics should be read. On a thin day, headline foreign-flow figures can reflect one counter and not a change in overall investor appetite. Companies weighing listings, share sales or buybacks should note how few shares it takes to move prices and flows in the current market. Readers tracking foreign investor activity as a gauge of confidence should look at the breadth of selling as well as the total.
This article reports market data and is not investment advice.
Source Attribution: Colombo Stock Exchange market data and publicly available market information.