Wednesday 16 November 2016

Colombo Stock Exchange Market Review – 16th Nov 2016


Colombo stocks plummeted on Wednesday as losses in the banking and telco stocks led ASI to the lowest level in 18 weeks. All Share index declined by 57.13 index points or 0.89% to end at 6,349.03 while 20-scrip S&P index dipped by 51.87 index points (-1.45%) to close the session at 3,531.92.

Price depreciation in Commercial Bank (closed at LKR 141.10, -4.7%), Dialog Axiata (closed at LKR 10.50, -5.4%) and Vallibel One (closed at LKR 19.10, -6.8%) impacted the index performance.

Daily market turnover was LKR 514mn. No negotiated deals were recorded during the session. John Keells Holdings emerged as the top contributor to the turnover with LKR 229mn followed by Dialog Axiata (LKR 40mn), Browns Investments (LKR 30mn) and Teejay Lanka (LKR 28mn) respectively.

Losers offset the gainers 115 to 35, while 73 counters remained unchanged. High investor activity was witnessed in John Keells Holdings, Teejay Lanka, Access Engineering and Dialog Axiata.

Foreign investors were net sellers for the session with a net foreign outflow of LKR 80mn. Foreign participation was 32%. Net foreign outflows were seen in John Keells Holdings (LKR 83mn), Dialog Axiata (LKR 6mn), People’s Leasing & Finance (LKR 3mn) while net foreign inflow was mainly seen in Nations Trust Bank (LKR 5mn).

Meanwhile, at the weekly treasury bill auction, six month yield advanced by 9bps to 9.65% while one year treasury rate increased to 10.20% (+6bps). Three month Treasury bill rate remained at 8.60%. CBSL offered LKR 29.5bn worth of Treasury bills today and the auction was oversubscribed by 1.4 times with bids received amounting to LKR 41.9bn. It was decided to accept LKR 1bn worth of bills.
Source: LSL

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