Sri Lankan stocks mark 9-wk closing low; turnover at 7-yr high

Reuters: Sri Lankan shares hit a nine-week closing low on Wednesday, but turnover touched a seven-year high as foreign investors exited from Lanka ORIX Leasing Company Plc.

The Colombo stock index ended 0.23 points weaker at 6,440.20, its lowest closing level since Jan. 23.

LOLC Holdings (Private Ltd) bought nearly 30 percent stake in its own subsidiary, Lanka Orix Leasing Company Plc, from ORIX Corporation of Japan, the company said in a disclosure to the bourse.

The Japanese firm’s stake sale resulted in a foreign fund outflow of a net 12.7 billion rupees ($81.62 million) worth shares on Wednesday, reversing the year-to-date net foreign inflow to a net 5.3 billion rupees worth outflow.

This was the highest net outflow in the last nine years for which data is available.

Turnover stood at 13.4 billion rupees ($86.12 million), the highest since March 16, 2012 and well above this year’s daily average of around 1.2 billion rupees.


“The biggest trade was the LOLC deal. Apart from that, there was no improvement in sentiment as investors are waiting for the outcome of the no-confidence motion against the prime minister,” said Prashan Fernando, CEO at Acuity Stockbrokers.

Losses in shares such as Ceylinco Insurance Plc, which fell 6.8 percent, and Ceylon Theatres Plc, which ended 4.4 percent weaker, offset gains by Lanka ORIX leasing Company and Dialog Axiata Plc, which ended up 2.2 percent.

Shares in Lanka ORIX leasing Company rose 6.3 percent.

Prime Minister Ranil Wickremesinghe is facing a no-confidence motion, which will be debated on April 4 before voting. Analysts say Wickremesinghe needs support from many political parties to survive the vote.

Negative sentiment over the island nation’s slower economic growth also weighed on the market, brokers said.

The index fell 1 percent last week, its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released last week showed. 

($1 = 155.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Sri Lankan stocks fall to lowest close in nine weeks

Reuters: Sri Lankan shares fell on Tuesday to their lowest close in nine weeks as negative sentiment over the island nation’s slower economic growth continued to weigh on the market.

However, foreign investors bought a net 477.1 million rupees ($3.06 million) worth of shares, extending the year-to-date net foreign inflow to 7.4 billion rupees worth of equities.

The Colombo stock index closed 0.13 percent weaker at 6,440.43, at its lowest close since Jan. 23.

The bourse fell 1 percent last week, its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released last week showed.

“Most investors are on the sidelines waiting for the central bank’s interest rate decision in April,” said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

“But we can see some block trades taking place while foreign investors are also collecting.”

Turnover was 865.9 million rupees ($5.55 million), less than this year’s daily average of around 955 million rupees.

Shares in Ceylon Cold Stores Plc fell 3.9 percent, while conglomerate John Keells Holdings Plc ended 0.4 percent weaker and Lanka ORIX Leasing Company Plc ended 0.8 percent down.

Analysts said an increase in retail fuel prices also weighed on investor sentiment.

Sri Lankan fuel retailer Lanka IOC Plc, which fell 1.6 percent in the session, raised retail prices for gasoline and diesel over the weekend due to losses incurred after the government’s failure to implement a pricing formula. 

($1 = 156.0000 Sri Lankan rupees) 

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

Sri Lankan stocks edge higher from 8-week low

Reuters: Sri Lankan shares crawled higher on Monday from their lowest close in more than eight weeks as blue chip stocks gained, but negative sentiment over the island nation’s slower economic growth weighed on the market.

The Colombo stock index closed 0.08 percent firmer at 6,448.60, edging up from its lowest close since Jan. 24 hit on Friday.

The bourse fell 1 percent last week, its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released last week showed.

Investors are waiting for the central bank’s interest rate decision in April, said Dimantha Mathew, head of research, First Capital Holdings.

Turnover was 1.6 billion rupees ($10.3 million), more than this year’s daily average of around 956.6 million rupees.

Shares in conglomerate John Keells Holdings Plc rose 0.8 percent, while Ceylinco Insurance Plc ended 2.3 percent firmer and biggest listed lender Commercial Bank of Ceylon Plc gained 0.1 percent.

Foreign investors sold a net 354.9 million rupees worth of shares, but they have been net buyers of 6.9 billion rupees worth of equities so far this year.

Analysts said an increase in retail fuel prices also weighed on investor sentiment.

Sri Lankan fuel retailer Lanka IOC Plc raised retail prices for gasoline and diesel, the company said on Saturday, due to losses incurred after the government’s failure to implement a pricing formula. 

($1 = 156.1000 Sri Lankan rupees) 

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

Sri Lankan stocks slip to over 8-week closing low; lower economic growth weighs

Reuters: Sri Lankan shares slipped to their lowest close in more than eight weeks on Friday, led by beverage and telecom stocks as investors remained worried about the island nation’s slower economic growth, brokers said.

The Colombo stock index closed 0.12 percent lower at 6,443.75, marking its fourth session of fall in five. It fell 1 percent this week, in its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released on Tuesday showed.

“The market is moving sideways as investors are on the sidelines due to concerns over lower growth. They are also awaiting directions from the policy interest rate decision in April,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings Plc.

Turnover was 953.9 million rupees ($6.11 million), more than this year’s daily average of around 944.8 million rupees.

Shares in Lion Brewery (Ceylon) Plc fell 3.6 percent, Nestle Lanka Plc dropped about 1 percent, Softlogic Holdings Plc slumped 5 percent and Dialog Axiata Plc ended 0.7 percent weaker.

Foreign investors sold a net 58.4 million rupees worth of shares, but they have been net buyers of 7.2 billion rupees worth of equities so far this year. 

($1 = 156.0500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan stocks snap 3 sessions of falls

Reuters: Sri Lankan shares ended marginally higher on Thursday, snapping three straight sessions of falls, as investors bought beverage and diversified stocks, brokers said.

The Colombo stock index rose 0.09 percent to 6,451.51, after it posted an eight-week closing low in the previous session.

However, investors remain worried about the island nation’s slower economic growth, said analysts.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released on Tuesday showed.

“We saw some of the positivity coming in after the release of GDP data. But investors are concerned over the lower growth,” said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

“We can see some high net worth investors collecting with the index trading below 6,500.”

Turnover was 1.4 billion rupees ($8.97 million), more than this year’s daily average of around 936.4 million rupees.

Shares in Ceylon Tobacco Co Plc rose 2.9 percent, Ceylon Cold Stores Plc climbed 4.1 percent and conglomerate John Keells Holdings Plc closed 0.3 percent higher.

Foreign investors sold a net 24.9 million rupees worth of shares, but they have been net buyers of 7.3 billion rupees worth of equities so far this year. 

($1 = 156.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan stocks fall to 8-week closing low on growth worries

Reuters: Sri Lankan shares fell for a third straight session on Wednesday and posted their lowest close in eight weeks, as investors sold diversified stocks such as John Keells Holdings Plc on worries over slower economic growth, brokers said.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released on Tuesday showed.

The Colombo stock index fell 0.26 percent to 6,445.97, its lowest close since Jan. 24. It dropped 0.6 percent last week in its third straight weekly decline.

“The market is coming down on worries over the lower growth and political uncertainty,” said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

“With the index trading below 6,500, it’s a buyer’s market as most of the stocks are undervalued. But political uncertainty and no visible policy direction hurt sentiment.”

Turnover was 632.2 million rupees ($4.05 million), less than this year’s daily average of around 936.4 million rupees.

Shares in conglomerate John Keells Holdings dropped 1.1 percent, Ceylon Cold Stores Plc fell 1.7 percent and Commercial Bank of Ceylon Plc, the country’s biggest listed lender, declined 2.2 percent.

Foreign investors bought a net 164.9 million rupees worth of shares, extending the year-to-date net foreign inflow to 7.4 billion rupees worth of equities so far this year. 

($1 = 156.0700 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan stocks fall to nearly 7-week closing low on growth worries

Reuters: Sri Lankan shares fell to their lowest close in nearly seven weeks on Monday, as investors sold diversified and manufacturing stocks on worries over slower economic growth, brokers said.

The statistics department withdrew its 2017 full-year and fourth-quarter GDP data on Friday, a day after saying the economy expanded 3.1 percent last year, the slowest pace in 16 years, and 1.4 percent in the fourth quarter.

The Colombo stock index fell 0.24 percent to 6,493.63, its lowest since Jan. 30. It dropped 0.6 percent last week in its third straight weekly decline.

“It’s a dull day as most of investors were on the sidelines and worried over the GDP,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC.

Turnover was 396.5 million rupees ($5.29 million), the lowest since March 7 and well below this year’s daily average of around 966.8 million rupees.

Shares in Vallibel One Plc fell 1.7 percent, Carson Cumberbatch Plc ended 2.8 percent weaker, Sri Lanka Telecom Plc lost 1.4 percent.

Foreign investors bought a net 58.1 million rupees worth of shares, extending the year-to-date net foreign inflow to 7.2 billion rupees worth of equities. 

($1 = 155.9500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)