Colombo Stock Exchange Market Review – 28th Oct 2016

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Colombo Stock Exchange Trade Summary 28-Oct-2016

PM’s economic policy statement failed to uplift the sentiments in Colombo Bourse on Friday and the equities marked another lackluster trading session with indices closing in red. ASI edged lower by 13.65 index points (-0.2%) to close at 6,6424.85 while blue-chip S&P SL 20 index closed at 3,572.36 down by 11.70 index points (-0.3%). 

Resilience shown in Commercial Leasing (closed at LKR 3.70, +2.8%) and Ceylon Tobacco (closed at LKR 850.00, +0.4%) failed to negate the effects of losses in index-heavy Commercial Bank (closed at LKR 144.60, -1.1%), John Keells Holdings (closed at LKR 149.10, -0.4%) and Sri Lanka Telecom (closed at LKR 36.60, -1.1%).

Market breadth was negative where out of 204 counters traded, 83 slipped, 50 advanced while 71 remained unchanged. Among the losers were Piramal Glass (LKR 5.30,-3.6%) and John Keells Hotels (LKR 11.50,-1.7%). Both companies reported drop in profits in the earnings reports released yesterday.

Market turnover was mere LKR 288mn. Crossings each in Hatton National Bank - nonvoting (0.3mn shares at LKR 190.00) and Cargills Ceylon (~0.2mn shares at LKR 173.00) contributed 31% to the turnover. Accordingly Hatton National Bank - nonvoting (LKR 57mn), Access Engineering (LKR 39mn) and Cargills Ceylon (LKR 33mn) made the biggest contribution to days’ turnover.

Retail investor activity was mostly concentrated around John Keells Holdings, Access Engineering and Colombo Dockyard.

Foreign investors were net buyers today with a net foreign inflow of LKR 72mn. The top net inflows were seen in Hatton National Bank non-voting (LKR 57mn), Ceylon Cold Stores (LKR 19mn), Hemas Holdings (LKR 11mn) while top net foreign outflows were seen in Richard Pieris (LKR 16mn) and Colombo Dockyard (LKR 4mn). Foreign investor activity accounted for 21% of todays’ turnover.
Source: LSL

Sri Lankan shares edge down in dull trading ahead of govt budget

Sri Lankan shares ended weaker on Friday in thin trading, hovering near a 12-week closing low hit earlier in the week, as the prime minister's plan for improving the investment climate failed to bring cheer to the market.

Sri Lanka will introduce concessions on investments and a lower tax regime in its budget to boost faltering investment, generate jobs and remove obstacles to growth for start-up companies, Prime Minister Ranil Wickremesinghe said in an economic policy statement on Thursday.

However, investors continued to await the budget, as well as the central bank's key policy rates and corporate earnings.

"Statements will not help the sentiment anymore. The market is waiting to see some implementation of those policies," a stockbroker said asking not to be named.

The benchmark index of the Colombo Stock Exchange ended 0.21 percent, or 13.65 points, weaker at 6,424.85, near Monday's closing low, which was its lowest close since Aug. 1.

The index fell 0.35 percent for the week, recording its third straight weekly fall.

Friday's turnover was 288.6 million rupees ($1.96 million), less than half of this year's daily average of 729.1 million rupees.

Foreign investors were net buyers of 72.3 million rupees worth of equities on Friday, extending the net foreign inflow so far this month to 1.21 billion rupees.

They have sold a net 1.74 billion rupees worth of shares this year.

Sri Lanka's central bank is expected to keep its key interest rates steady on Monday, analysts said.

Sri Lanka's quarterly earnings season started two weeks ago, but most locally listed firms report in late October or early November. The national budget is scheduled to be presented on Nov. 10.

Shares in biggest listed Lender Commercial Bank of Ceylon Plc fell 1.09 percent while conglomerate John Keells Holdings Plc fell 0.40 percent. 

($1 = 147.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)