Sri Lankan shares fall to over 8-month low; Seylan deal weighs

Reuters: Sri Lankan shares fell for a sixth straight session on Tuesday to hit its lowest in more than eight month led by financials as a Seylan Bank share deal cancellation weighed on sentiment.

Stockbrokers said the Colombo Stock Exchange cancelled the 1.3 billion rupees ($8.7 million) Seylan Bank foreign deal on the request of the broker with the consent of both buyer and seller.

Prime Minister Ranil Wickremesinghe ordered a reversal and a probe into the deal as it failed to follow proper procedure.

The Colombo stock index fell 0.45 percent to hit 6,222.33, its intraday lowest since April 8, but recovered to close 0.25 percent weaker at 6,234.75, its lowest close since Nov. 29. The bourse has fallen near 1.7 percent in six straight sessions through Tuesday.

"The market trading was quiet. We expect the turnover levels to fall further. The next supporting level is at 6,000. We expect the index to fall in thin trade," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Dealers said the cancellation of Seylan Bank has hurt the sentiment of potential foreign buyers.

Turnover stood at 537.6 million rupees ($3.61 million), less than this year's daily average of around 744.7 million rupees.

Foreign investors bought a net 80.3 million rupees worth of shares on Monday, extending the year-to-date net foreign inflow to 697.5 million rupees worth of equities.

Shares in top private lender Commercial bank of Ceylon lost 1.53 percent, while Hatton National Bank fell 1.87 percent to drag down the overall index.

($1 = 148.7500 Sri Lankan rupees) 

(Reporting by Shihar Aneez)

Colombo Stock Exchange Market Review – 20th Dec 2016

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Colombo Stock Exchange Trade Summary 20-Dec-2016

Colombo Bourse stretched the losing streak for the sixth session on Tuesday as benchmark index closed lower despite high foreign activity. ASI closed 15.82 index points (-0.3%) below at 6,234.75 while S&P SL 20 index closed 16.23 points (-0.5%) below at 3,496.06. Lackluster sentiments prevailed across the board with losers outweighing gainers 80 to 38.

High caps namely Commercial Bank (LKR 141.40, -1.5%), Hatton National Bank (LKR 220.30, -1.9%) and John Keells Holdings (LKR 146.00, -0.7%) closed lower in today’s session. Among the gainers was National Development Bank (LKR 158.90, +3.2%) and Asian Hotels & Properties (LKR 57.00, +2.7%).

Daily market turnover was LKR 538mn. Negotiated deals were recorded in Ceylon Tobacco (36,500 shares at LKR 846.70), Chevron Lubricants (0.2mn shares at LKR 160.00) and Commercial Bank (1mn shares at LKR 145.00). Crossings accounted for 40% of the turnover. Commercial Bank was the top contributor to the turnover with LKR 261mn while Chevron Lubricants (LKR 56mn) and Ceylon Tobacco (LKR 50mn) made noteworthy contributions.

Blue-chips dominated the market activity today with relatively high trading activity in John Keells Holdings, Chevron Lubricants (LKR 160.00, -0.1%) and Commercial Bank.

Foreign investors were net buyers with net inflow of LKR 80mn. Top net inflows were seen in Commercial Bank (LKR 84mn), Ceylon Tobacco (LKR 19mn) and Sampath Bank (LKR 15mn) while top net outflow was seen in Chevron Lubricants (LKR 18mn). Foreign activity accounted for 64% market turnover.

Source: LSL