Tuesday 10 January 2017

Colombo Stock Exchange Market Review – 10th Jan 2017



Colombo stock market ended lower on Tuesday amid increase in treasury yields for the sixth straight week. All Share index lost 2.93 index points or 0.05% to end the session at 6,152.59 while S&P SL20 index decreased by 8.97 index points (-0.26%) to close at 3,462.31.

Market premier blue-chip, John Keells Holdings (closed at LKR 140.50, -0.6%) led the index down along with banks namely, Commercial Bank (closed at LKR 140.00, -1.3%), Sampath Bank (closed at LKR 263.00, -0.6%) and Hatton National Bank (closed at LKR 222.50, -1.1%).

Daily market turnover was LKR 345mn. Top contributor for the day was Chevron Lubricants with LKR 345mn underpinned by two crossings of 1.2mn shares at LKR 156.00. Notable contributions were witnessed in Melstacorp (LKR 19mn), John Keells Holdings (LKR 12mn) and Adam Capital (LKR 11mn) respectively.

Market breadth was neutral where 54 stocks advanced while 52 stocks declined. High investor activity was seen in First Capital Holdings, following the announcement of an interim dividend. Company declared a dividend of LKR 2.00 per share. Hayleys Fabric, Overseas Reality rights and John Keells Holdings were among heavily traded counters.

Foreign investors were net buyers with a net foreign inflow of LKR 18mn. Net foreign inflows were seen in Melstacorp (LKR 16mn), Hatton National Bank (LKR 8mn), Marawila Resorts (LKR 1mn) while net foreign outflow was mainly seen in Chevron Lubricants (LKR 4mn). Foreign participation for the day was 63%.

Meanwhile, at Treasury bill auction today, rates advanced across the board. Three month yield advanced to 8.97% (+19bps) and six month yield increased by 10bps to 9.89% while one year Treasury bill rate advanced by 9bps to 10.31%. CBSL offered LKR 24bn worth Treasury bills and the auction was oversubscribed by 2 times with bids received amounting to LKR 47.3bn. It was decided to accept LKR 23.9bn worth of treasury bills.
Source:LSL

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