Colombo Stock Exchange Market Review – 11th Oct 2016

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Colombo Stock Exchange Trade Summary 11-Oct-2016

Colombo stock market declined for second straight day despite foreign inflows to selected blue chips. Benchmark index closed at 6,538.28, down by 24.22 index points or 0.37% after touching 6,562 mark in the opening hours. High cap constituent, S&P SL 20 index shed 11.14 index points or 0.30% to end the session at 3,650.09.

Price depreciation in premier blue-chip, John Keells Holdings (closed at LKR 155.40, -1.3%) and its subsidiaries, Ceylon Cold Stores (closed at LKR 625.10, -2.6%) and Asian Hotels & Properties (closed at LKR 60.00, -3.2%) impacted the index negatively.

Daily market turnover was LKR 604mn. Commercial Bank was the top contributor to the turnover with LKR 217mn underpinned by a single crossing of 1.2mn shares at LKR 150.00. Counter accounted for 36% of the total turnover. 

Hatton National Bank (LKR 40mn), Tokyo Cement (LKR 33mn) and Seylan Developments (LKR 29mn) were among top contributors.

Losers outweighed the gainers 93 to 38, while 78 remained unchanged. High investor activity was witnessed in Seylan Developments, Commercial Credit & Finance and Tokyo Cement.

Foreign investors stood on buy side with a net foreign inflow of LKR 246mn. Foreign participation was 26%. Net foreign inflows were seen in Commercial Bank (LKR 196mn), Hatton National Bank (LKR 26mn), Teejay Lanka (LKR 18mn) while net foreign outflow was mainly seen in Hemas Holdings (LKR 14mn).

Source: LSL

Sri Lankan shares fall for 2nd session, led by John Keells

Reuters: Sri Lankan shares ended weaker for a second straight session on Tuesday, led by top conglomerate John Keells Holdings, though foreign investors' buying and gains in financials helped to cap the fall.

Trading volume was low as cautious investors awaited direction from the budget and September-quarter corporate results.

The benchmark index of the Colombo Stock Exchange finished 0.37 percent weaker at 6,538.28, its lowest close since Sept. 30.

"There was a bit of interest in the banking sector. But the overall market is still struggling with not many people ready to invest as tight liquidity has driven up market interest rates," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

"Outlook is mixed with expectations of better earnings for the last quarter and rising fixed-income returns ahead of the budget. Not many people are in for medium- to long-term investments at the moment. The market will move sideways until the budget."

Turnover was 603.7 million rupees ($4.12 million), less than this year's daily average of around 750 million rupees.

Stockbrokers said the market might see lower trading volumes as many investors await direction from the budget, scheduled on Nov. 10, and the government's long-term economic policy announcement.

A number of companies are expected to report their September-quarter results later this month, stockbrokers said.

Foreign investors, who have sold a net 2.73 billion rupees worth of shares so far this year, bought a net 246.3 million rupees worth of shares on Tuesday.

Shares of John Keells Holdings fell 1.3 percent.

Banking shares gained with top lender Commercial Bank of Ceylon rising 0.47 percent and Hatton National Bank climbing 0.87 percent.

($1 = 146.3700 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)