Sri Lankan shares climb to highest close in nearly 3 weeks

Reuters: Sri Lankan shares rose for the fourth straight session on Monday to their highest close in nearly three weeks, led by gains in banking and beverage stocks.

The Colombo stock index ended 0.18 percent higher at 6,091.45. It rose 0.4 percent last week, marking the second straight weekly gain.

The index, however, lost 1.1 percent in August, having hit its lowest close since March 2017 on Aug. 28. The bourse is down 4.4 percent so far this year.

The day’s turnover was at 404.2 million rupees ($2.5 million), nearly half of this year’s daily average of 810.7 million rupees.

Foreign investors sold a net 5 million rupees of shares on Monday, extending the net foreign selling so far this year to 4.2 billion rupees worth of shares.

Ceylon Tobacco Company Plc shares ended 0.2 percent higher, while Dialog Axiata Plc closed 1.7 percent firmer. Lanka ORIX Leasing Company Plc gained 3.5 percent and Hatton National Bank Plc ended 1.3 percent higher.

Sri Lankan companies posted a 4 percent total earnings growth in the June quarter from a year earlier, helped by financials, beverage shares, telecommunications and power and energy sectors, CT CLSA Securities (PVT) Ltd said in a research note. 

($1 = 161.5000 Sri Lankan rupees) 

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

Sri Lankan shares post weekly gain, but drop about 1 pct on month

Reuters: Sri Lankan shares posted a weekly gain as they edged higher marginally on Friday, pulling further away from a 17-month low hit earlier this week.

The Colombo stock index ended 0.06 percent higher at 6,080.26, in its fourth gaining session in 15. It rose 0.4 percent this week, marking the second straight weekly gain.

The index, however, lost 1.1 percent in August, having hit its lowest close since March 2017 on Tuesday.

The day’s turnover was at 639 million rupees ($3.96 million), less than this year’s daily average of 813.3 million rupees.

“Gains are limited. There is a bit of profit taking from local investors and foreign investors,” said Dimantha Mathew, head of research at broker First Capital Holdings.

“Foreign selling is a worrying sign.”

Foreign investors sold a net 99.9 million rupees of shares on Friday, extending the net foreign selling so far this year to 4.2 billion rupees worth of shares.

Commercial Leasing and Fiance Plc shares ended 8.3 percent up, while BRAC Lanka Finance Plc closed 17.9 percent higher.

The central bank had left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

The economy is unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent, Coomaraswamy said early this month.

($1 = 161.4000 Sri Lankan rupees) 

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

Sri Lankan shares end higher; financial stocks lead

Reuters: Sri Lankan shares ended higher on Thursday, moving away from their lowest close in 17 months hit earlier this week, as reports that the main state-owned pension fund would return to the equity market boosted sentiment.

The Employees’ Provident Fund, which had halted equity investments in 2015, is set to resume buying and selling shares, local papers reported on Wednesday, citing Central Bank Governor Indrajit Coomaraswamy’s remarks at an event.

The Colombo stock index ended 0.53 percent higher at 6,076.68, moving further away from its lowest close since March 28, 2017, hit on Tuesday. The bourse posted its third gain in 14 sessions.

The day’s turnover was at 337.9 million rupees ($2.09 million), less than half of this year’s daily average of 814.4 million rupees.

“Market is still on positive sentiment after the central bank governor’s comment. That gave some confidence to local investors, but we don’t expect the positive sentiment to last long,” said Atchuthan Srirangan, assistant manager - research, First Capital Holdings Plc.

“Foreign selling is continuing - which is a worrying sign.”

Foreign investors sold a net 76.9 million rupees of shares on Thursday, extending the net foreign selling so far this year to 4.1 billion rupees worth of shares.

Shares in Commercial Leasing and Fiance Plc ended 20 percent firmer, while Ceylinco Insurance Plc ended 5 percent up and the biggest listed lender Commercial Bank of Ceylon Plc closed 0.9 percent higher.

The central bank had left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

The economy is unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent, Coomaraswamy said early this month.

($1 = 161.3500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez, Editing by Sherry Jacob-Phillips)

Sri Lankan shares rebound from 17-mth closing low

Reuters: Sri Lankan shares rebounded on Wednesday, from their lowest close in 17 months, boosted by local media reports citing the central bank governor that the main state-owned pension fund will return to the equity market.

The Employees’ Provident Fund, which had halted equity investments in 2015, is set to resume buying and selling shares, local papers reported on Wednesday citing Central Bank Governor Indrajit Coomaraswamy’s remarks at an event.

The Colombo stock index ended 0.57 percent higher at 6,044.67, edging up from its lowest close since March 28, 2017 hit on Tuesday. The bourse posted its second gain in 13 sessions.

The day’s turnover was at 1.1 billion rupees ($6.8 million), more than this year’s daily average of 817.4 million rupees.

“Market bounced back with healthy turnover,” said Hussain Gani, deputy CEO, Softlogic Stockbrokers.

“It’s a good sign that local investors are back after the central bank governor said government institutions will invest in equities.”

Foreign investors sold a net 590.2 million rupees of shares on Wednesday, extending the net foreign selling so far this year to 4 billion rupees worth of shares.

Shares in Ceylon Tobacco Company Plc rose 1.9 percent, while conglomerate John Keells Holdings Plc ended 1.4 percent higher. The biggest listed lender Commercial Bank of Ceylon Plc closed 1.7 percent firmer.

The central bank had left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

The economy is unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent, Coomaraswamy said early this month. 

($1 = 161.3000 Sri Lankan rupees) 

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

Sri Lankan shares fall on worries over tax proposals

Reuters: Sri Lankan shares ended slightly weaker on Friday in light trade and posted their ninth session of decline in 10, as worries over new tax proposals weighed on sentiment.

However, foreign investors bought beaten-down stocks, limiting the downside. Foreign buying accounted for about half of the day’s turnover of 209.5 million rupees ($1.31 million) which was well below this year’s daily average of 822 million rupees.

Foreign investors purchased a net 32.3 million rupees of shares, making them net buyers for a second straight session after five consecutive sessions of sales. They have sold a net 3.4 billion rupees worth of shares so far this year.

The Colombo stock index fell 0.05 percent to 6,052.69, hovering near its lowest close since March 30, 2017 hit on Tuesday. It closed marginally higher for the week after four straight weekly falls.

“We expected the uptrend to be short lived and today there was not much of turnover due to less foreign and local participation,” said Dimantha Mathew, head of research at broker First Capital Holdings.

“Lower local participation is continuing due to the tax worries and hurting investor sentiment.”

Banking and telecom stocks have been recently under pressure after a local media reported last week that the government planned to impose new levies on these sectors to boost revenue, analysts said.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, have also dented investor appetite for riskier assets, analysts said.

Shares in Dialog Axiata Plc fell 1.7 percent, market heavyweight John Keells Holdings lost 0.5 percent and Lanka ORIX Leasing Co Plc declined 3.2 percent.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent. 

($1 = 160.3500 Sri Lankan rupees) 

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

Sri Lankan shares snap 8 sessions of falls on foreign buying

Reuters: Sri Lankan shares closed higher for the first time in nine sessions on Thursday as foreign investors bought beaten-down stocks, although worries over new tax proposals limited the upside.

Foreign buying accounted for about two-thirds of the day’s turnover of 1.07 billion rupees ($6.67 million) which was better than this year’s daily average of 826 million rupees.

Foreign investors purchased a net 82.5 million rupees of shares, making them net buyers for the first time in six sessions. They sold a net 888.8 million rupees in the previous five sessions, taking the total net outflow so far this year to 3.44 billion rupees.

The Colombo stock index rose 0.25 percent to 6,055.76, edging up from its lowest close since March 30, 2017 hit in the previous session. It has declined about 4.8 percent so far this year.

“Market is up on foreign buying. Local investors are still on the sidelines with the proposed new taxes. We saw foreigners returning to the market with the index hovering near 6,000 mark as it is attractive to them,” said Dimantha Mathew, head of research at broker First Capital Holdings.

Banking and telecom stocks were recently under pressure after a local media reported last week that the government planned to impose new levies on these sectors to boost revenue, analysts said.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, have also dented investor appetite for riskier assets, analysts said.

Market heavyweight John Keells Holdings gained 0.9 percent, while Lanka ORIX Leasing Co Plc rose 3.3 percent.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent. 

($1 = 160.3500 Sri Lankan rupees) 

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

Sri Lankan shares extend falls to near 17-month closing low

Sri Lankan shares extended losses into an eighth session on Tuesday and posted their lowest close in nearly 17 months, as foreign investors continued to sell, while a report about new tax proposals weighed on the market as well.

Foreign investors sold shares worth a net 48.1 million rupees ($300,000), extending the foreign outflow to a net 888.8 million rupees in the last five sessions, and a net 3.52 billion rupees worth of equities so far this year.

Banking and telecom stocks have been declining since a local media reported that the government planned to impose new levies on these sectors to boost revenue, analysts said.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, also dented investor appetite for riskier assets, analysts said.

A local daily reported on Friday that a number of changes proposed in the Finance Act would see new levies on several sectors including telecom, vehicle imports and tourism.

“Still the tax issue has not been clarified. Banks and telecom shares are mostly hit by this and an uncertainty prevails over this,” said Atchuthan Srirangan, assistant manager - research, First Capital Holdings Plc.

The Colombo stock index edged down 0.06 percent to 6,040.37, its lowest close since March 30, 2017. It has declined about 5 percent so far this year.

Turnover stood at 464.1 million rupees, compared with this year’s daily average of 824.4 million rupees.

Top mobile phone service provider Dialog Axiata fell 0.7 percent, while conglomerate Hemas Holdings lost 4.3 percent.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent.

The markets will be closed on Wednesday for a holiday. 

($1 = 160.3500 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)