Sri Lanka stocks gain to over 32-month high; Keells leads

(Reuters) - Sri Lankan stocks rose more than 1 percent on Tuesday, breaking the psychological barrier of 6,500 to hit their highest closing level in more than 32 months on foreign buying with lower interest rates helping investors across the board to buy risky assets, stockbrokers said.

The gains were led by diversified shares like conglomerate John Keells Holdings PLC and beverage shares like Nestle Lanka PLC.

The main stock index ended up 1.03 percent, or 66.81 points, at 6,565.81, its highest close since Oct. 13, 2011.

Shares in conglomerate John Keells Holdings PLC, which led the index gain, rose 3.30 percent to 234.60 rupees while Nestle Lanka PLC rose 6.21 percent to 2,095 rupees.

"Keells started moving up and gave a boost to the market. That boosted the retail investor sentiment supported by low interest rates," said Reshan Kurukulasuriya, COO of Richard Peiris Securities.

Turnover was 1.73 billion rupees, much higher than this year's daily average of around 1.05 billion rupees.

Foreign investors were net buyers of 290.2 million rupees worth of shares on Tuesday, the first time in three sessions and extending the year-to-date net foreign inflow to 9.22 billion rupees.

Brokers said investors were bullish about the market after witnessing large state funds actively trading last week.

Analysts said foreigners have been buying risky assets because they see value in them, while falling yields in fixed assets gradually prompt local investors to shift to equities.

They also say foreign buying could continue due to lower inflation after government data showed annual inflation eased to 2.8 percent in June, its lowest since February 2012, down from 3.2 percent a month earlier.

However, analysts said investors were concerned over the recent ethnic violence and possible implications of a government spokesman saying Sri Lanka bought Iranian crude via third parties.

The market has been on a rising trend since late February due to continued foreign buying and lower interest rates.

($1 = 130.2600 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka stocks close up 1.0-pct

July 08, 2014 (LBO) - Sri Lanka's stocks closed up 1.03 percent pushing the index to a four-month high with the favorable economic outlook boosting foreign investor sentiment, brokers said.

The Colombo benchmark All Share Price Index closed 66.81 points higher at 6,565.81, up 1.03 percent. The S&P SL20 closed 58.22 points higher at 3,676.11, up 1.61 percent.

Turnover was 1.74 billion rupees, up from 1.35 billion rupees a day earlier with 96 stocks closed positive against 80 negative.

Distilleries closed 30 cents higher at 205.40 rupees with two off-market transactions of 219.76 million rupees changing hands at 205.00 rupees per share contributing 13 percent of the daily turnover.

The aggregate value of all off-the-floor deals represented 29 percent of the turnover.

PCH Holdings closed flat at 3.60 rupees and PC Pharma closed 30 cents lower at 2.50 rupees, attracting most number of trades during the day.

Foreign investors bought 483.89 million rupees worth shares while selling 193.65 million rupees worth shares.

Nestle Lanka closed 122.50 rupees higher at 2,095.00 rupees and John Keells Holdings closed 7.50 rupees higher at 234.60 rupees, contributing most to the index gain.

JKH’s W0022 warrants closed 1.80 rupees higher at 64.80 rupees and its W0023 warrants closed 2.20 rupees higher at 75.40 rupees.

HNB closed 4.00 rupees higher at 170.00 rupees and Lanka Orix Finance closed 10 cents lower at 3.70 rupees.

Lion Brewery Ceylon closed 31.50 rupees higher at 524.90 rupees and Ceylon Beverage Holdings closed 14.60 rupees lower at 550.00 rupees.

CSE on the brink of double-digit gain

The Colombo Stock Exchange (CSE) is a fraction away from posting double-digit returns on a year-to-date basis.

Improved sentiments saw the benchmark All Share Index up 21 points to close at 6,499 points, the highest level in two-and-a-half years.

The ASI’s year-to-date gain was at 9.91% yesterday whilst the liquid S&P SL 20 Index has already surpassed double digit milestone and remain up 10. 85%.

Promoters of capital markets will be keenly watching how the CSE fairs today and whether improved investor sentiments will sustain to reach the important double digit year-to-date return figure.

LOLC Securities said ASI closed near psychological resistance level of 6,500 yesterday with the continued interest witnessed in big caps.

Several crossings took place as well while JKH accounted for four of them.

The counter became the top turnover contributor, reducing the foreign stake by 724,806 shares while the share price closed at Rs. 227.10 gaining 0.93%. Share price appreciation of LION and JKH contributed to ASP mostly.

Retail side was focused on PCH Holdings (12 million shares) and PC Pharma (31.8 million shares) where their stock prices increased by 24% and 22% respectively during the day. Central Investments & Finance also saw heavy trading with 12.58 million shares changing hands.

Lanka Securities said gainers surpassed losers 142 to 81, while 54 counters remained unchanged. “Cash map marginally improved to 56% from 53%,” it added.

Foreigners were net sellers yesterday for a second straight session offloading Rs. 167.9 million. But they have been net buyers of Rs. 8.9 billion so far this year.

Net outflow was largely on account of JKH (Rs. 165 million) and Distilleries (Rs. 51 million) but there was net buying on Chevron (Rs. 46.5 million) and Commercial Bank (Rs. 11.5 million).

Last month CSE said in the first five months of 2014, the Colombo stock market outperformed its major indicators from 2013, with the All Share Index (ASI) closing at 6,263.46 on 30 May, presenting a 5.9% increase and the S&P SL 20 closing at 3,454.61 on the same day, with a 5.8% increase. Yesterday’s closing confirms the market has remained buoyant for S&P SL 20 index to reach double digit levels.

The Bourse has also proved to be an attractive avenue of investment, considering the prevailing fixed deposit interest rates of 5 to 6%. CSE said by end May nearly 46% of stocks performed outstandingly, where 137, of the 293 listed, companies have given returns above 5%; including 49 companies providing an increase in returns over 20%, 51 companies appreciating by price between 10 and 20% and 37 companies increasing in value by 5 and 10%.

CSE also said the listing of new companies on the Exchange has gathered momentum within the business community, with seven companies listing and increasing the total number of listed companies to 293. In the first five months of the year, the CSE saw three equity IPO’s raising Rs. 2.58 billion, four debt IPO’s raising Rs. 5.5 billion and one equity introduction. The Rs. 2.58 billion raised through equity IPO’s is the highest since 2011.

Last year the CSE provided a 4.78% return in terms of gains in the ASI and a 5.79% gain on the S&P SL20 Index. The ASI indicated the most notable increase in comparison to previous years, where 2012 and 2011 declined by 7.1% and 8.5% respectively.
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