Overseas investors pulled a net LKR 112 million from Colombo equities on Monday, with one banking stock accounting for more than half of the selling.
Foreign investors were net sellers on the Colombo Stock Exchange for another session on Monday, extending a run of outflows that has taken the year-to-date total past LKR 57 billion.
Foreign investors sold LKR 145 million of shares and bought LKR 33 million, a net outflow of LKR 112 million. Sales were about four and a half times purchases. Against turnover of LKR 3.16 billion, foreign selling made up under 5% of the value traded, so Monday’s weakness was not mainly a foreign story.
The cumulative figures give the day more weight. Net foreign outflows total LKR 346.9 million so far in October and LKR 57.6 billion for the year to date. Monday was the fourth straight session of net foreign selling. Daily flow data for the past nine sessions show net outflows on seven of them, with only two small net inflows of LKR 8 million and LKR 20 million.
The selling was concentrated in a few counters. NDB recorded the largest net foreign outflow at LKR 60 million, about 53% of the day’s total. AEL followed with LKR 31.8 million and John Keells Holdings with LKR 10 million. Together the three accounted for about LKR 102 million of the net outflow. DIAL and TKYO.X also saw net foreign selling of LKR 7.2 million and LKR 5.9 million.
Net foreign buying was small. VLL drew the largest inflow at LKR 4.2 million, followed by LFIN at LKR 1.5 million. Three other counters, SEMB, BIL and PKME, each attracted less than LKR 1 million.
The outflow came as the All Share Price Index fell 168 points, or 0.81%, to 20,644. Foreign activity in the government securities market moved the other way. Foreign holdings of Treasury bills and bonds stood at LKR 198.8 billion on October 1, up 0.92% on the previous week.
A single session’s flow is small next to the year-to-date total. The pattern in the coming weeks will show whether foreign selling is easing or continuing at the pace of recent sessions.
Key Numbers
| Indicator | Level | Comparison |
|---|---|---|
| Foreign purchases (day) | LKR 33 mn | n/a |
| Foreign sales (day) | LKR 145 mn | n/a |
| Net foreign flow (day) | -LKR 112 mn | Net outflow |
| Net foreign flow (month to date) | -LKR 346.9 mn | Net outflow |
| Net foreign flow (year to date) | -LKR 57.6 bn | Net outflow |
| Largest net foreign sale: NDB | -LKR 60 mn | About 53% of day’s net outflow |
| Second largest: AEL | -LKR 31.8 mn | n/a |
| Third largest: JKH | -LKR 10 mn | n/a |
| Largest net foreign purchase: VLL | +LKR 4.2 mn | n/a |
| Foreign holding of government securities | LKR 198.8 bn | +0.92% week-on-week |
Business Impact
Sustained foreign selling matters most for listed companies planning share sales or other equity fundraising, because overseas participation affects demand and liquidity. Monday’s outflow was small, and foreign investors accounted for a minor share of turnover, so it does not by itself signal a change in market conditions. The year-to-date figure shows that net foreign selling has persisted well beyond a single session. Banks and other companies with sizeable foreign shareholdings may see their share prices react to flows more than others. Businesses that rely on foreign capital should watch whether the pace of outflows slows.
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.