Local buying of JKH to the tune of Rs. 7 Bn in a week accounts for main foreign outflow

Analysts outline that with Monday (November 5^th 2018) net outflow due to foreign selling of market heavy weight John Keells Holdings PLC (JKH) brings the figure since 26^th October 2018 to over Rs. 7 billion. In January to September this year the outflow was only Rs. 6 billion. On Monday 29^th October 2018 first parcel of JKH shares traded with over 20 million shares trading reporting over Rs. 3 billion turnover alone from JKH trade to the market turnover.

According to analysts market turnover was a high again on 5^th November 2018 Monday reporting Rs. 4.1 billion with deals on JKH accounting for Rs. 3.5 billion. Nearly 23.7 million of JKH shares traded and foreign holding declining by 21.4 million. JKH closed one rupee lower at Rs. 150. Foreign sales accounted for 78% of the turnover. Analysts and reports said businessmen Harry Jayawardena is slowly taking over a major stake in JKH at a larger discounted price when JKH financials had been weaker during last quarters and before the JKH price may move up to a high due to new government’s policy that may fuel the capital flows to the market from local institutional funds.

Amidst a sudden rise in All Share Price Index (ASPI) of Colombo Stock Exchange (CSE) since 26^thOctober 2018 due to the changes that took place in the country’s political landscape, some foreign funds have already disposed a large parcel of country’s stock market heavy weight John Keells Holdings PLC (JKH) in turn reflected to show that foreigners are exiting the market and had added to the opposing political sentiments of the people who lost minister-ships to beneficially quote that foreigners are pulling out their money.

- Reporting by Devendra Francis