Sri Lankan shares close slightly higher in dull trade

Reuters: Sri Lankan stocks ended marginally higher on Monday in lacklustre trading as bargain-hunting investors picked up battered shares, but political instability and a rise in interest rates capped gains, brokers said.

The Colombo stock index ended 0.1 percent higher at 6,140.54. It hit a near 10-month closing low on Wednesday, and lost 0.5 percent last week, its second straight weekly decline.

Biggest listed lender Commercial bank of Ceylon Plc rose 2.2 percent while Colombo Cold Stores Plc rose 1.3 percent.

"We saw some bargain-hunting, but there were no big trades," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Foreign investors net bought 5.95 million rupees ($39,614) worth of equities on Monday, but they have net sold 1.63 billion rupees worth shares so far this year.

Turnover stood at 179.3 million rupees, its lowest since Jan. 18.

($1 = 150.2000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)

Colombo Stock Exchange Market Review – 30th Jan 2017

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Colombo Stock Exchange Trade Summary 30-Jan-2017

Colombo equities closed mostly flat in thin trading on Monday. ASI added mere 2.84 index points (+0.1%) to close at 6,140.54 on a turnover of LKR 179mn. However, the blue-chip S&P SL 20 index gained 9.25 index points (+0.3%) to end the session at 3,492.92.

Lackluster sentiments were seen across the board with losers beating gainers 59 to 56 while 91 scripts remained unchanged. Among the blue-chips, Commercial Bank, Ceylon Cold Stores and Sri Lanka Telecom led the gainers while AIA Insurance, Hemas Holdings and Asiri Hospitals were among top losers.

Commercial Bank closed with gains subsequent to the announcement of second interim dividend of LKR 3.00 per share. Commercial Bank voting closed at LKR 145.10, +2.2% while non-voting share closed at LKR 116.90, +3.4%. Further, the positive quarterly reports in Ceylon Cold Stores (LKR 739.10, +1.3%), John Keells Hotels (LKR 11.00, +2.8%) led the shares higher amid thin volumes.

Teejay Lanka (LKR 40mn), Hemas Holdings (LKR 29mn) and Chevron Lubricants (LKR 10mn) contributed most to the turnover. The only crossing of the day was reported in Hemas Holdings which saw 0.3mn shares changing hands at LKR 102.00 per share.

Teejay Lanka continued to witness selling pressure amid the negative quarterly report and the share closed at LKR 40.90, -0.2%. Apart from Teejay Lanka, retail investor activity was mostly concentrated on Chevron Lubricants (LKR 165.40, +0.7%), John Keells Holdings (LKR 140.00) and Sampath Bank (LKR 264.50, +0.2%).

Foreign investors were net buyers with net foreign inflow of LKR 6mn. Top net inflows were seen in Seylan Bank – nonvoting (LKR 4mn), Chevron Lubricants (LKR 4mn) and Watawala Plantations (LKR 2mn) while top net outflow was seen in Teejay Lanka (LKR 9mn). Foreign participation accounted for 36% of the day’s activity.

Source: LSL