Equities: CSE foreign selling slows, YTD outflow doubles

Though net foreign outflows from the Colombo Stock Exchange significantly slowed in September, down from Rs 19.5 billion in August to Rs 1.55 billion, total net foreign outflows for the first eight months of 2026 more than doubled year-on-year to Rs 55.7 billion, according to CT Smith Securities data and SenFin Securities' September equities report.

Referring to the selling activity observed within the month, SenFin Finance noted: "Foreigners kept selling, but less. A net Rs 1.55 b outflow, down from Rs 19.46 b in August, was fully absorbed by domestic buyers."

"Foreign activity fell to 4.9% of turnover; 1 September alone (Rs 647 million of sales) drove 39% of the outflow."

By end-September, the All Share Price Index had declined by 2.46% to close at 20,812.93, 8.01% below the 2026 opening level. The S&P SL20 index ended September at 5,894.16 — a 1.92% monthly decline that widened the YTD deficit to 4.27%, the report said.

"The SL20 peaked at 6,066.55 on 7 September, then fell to a monthly low on 30 September, though blue chips (-4.27% YTD) are still ahead of the broad ASPI (-8.01% YTD)."

During September, total turnover had been halved to Rs 32.7 billion, with crossings declining to 26.8% of total turnover. Regular market turnover also declined to Rs 23.9 billion from Rs 26.3 billion during the month. The unit noted that without August's block-driven spikes, turnover fell 52% M-o-M.

SenFin reported 98 crossings worth Rs 8.75 billion during September, with the ten largest blocks having contributed Rs 3.7 billion, or 11.4% of total market turnover. The largest blocks included Lanka Milk Foods (10 million shares, Rs 845 million), Renuka Foods (19.8 million shares, Rs 501.9 million), and Sampath Bank (3 million shares, Rs 427.5 million).