Colombo Stock Exchange Market Review – 19th Oct 2016

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Colombo Stock Exchange Trade Summary 19-Oct-2016

Colombo bourse closed flat on Wednesday amid the increase in treasury yields after six weeks. All Share index advanced to 6,461 mark in the morning session but closed the day at 6,444.39 with a gain of 1.52 index points or 0.02% while 20-scrip S&P SL index advanced by 5.31 index points or 0.15% to end at 3,597.05. 

Price gains in high caps, John Keells Holdings (closed at LKR 151.00, +0.7%), Commercial Leasing & Finance (closed at LKR 3.80, +5.6%), Commercial Bank (closed at LKR 146.50, +0.4%) spearhead the gains but losses in Asian Hotels & Properties (closed at LKR 58.00, -2.2%) & Sri Lanka Telecom (closed at LKR 35.90, -0.8%) impacted the index performance. 

Daily market turnover was LKR 483mn in absence of negotiated transactions. John Keells Holdings was the top contributor to the turnover with LKR 141mn followed by Hatton National Bank non-voting (LKR 37mn), Central Finance (LKR 29mn) and ACL Cables (LKR 26mn). 

High investor activity was witnessed in Central Investments & Finance (CIFL), subsequent to the monetary board’s approval on the resolution mechanism for repayment of depositors of CIFL and two other finance companies. According to Central Bank, once the repayment plan is legally finalized companies will be dealt with through applicable laws for liquidation. Stock hit intra-day low of LKR 1.20 but managed to closed at LKR 1.40 (-6.7%) before the imposition of trading halt.

Scripts of Bairaha Farms inclined to LKR 192.00 (+1.2%) supported by favorable earnings (+81%Yoy) for the September quarter. Furthermore, LB Finance quarter profits increased by 20%YoY and stock closed with a gain of 0.9% at LKR 128.00. Ceylon Grain Elevators, Bogala Graphite and John Keells Holdings were among most traded counters.

Market breadth was negative where out of 200 scripts, 70 slipped, 51 advanced while 79 remained unchanged.

Foreign investors continued to remain on buy side for the seventh straight session with a net foreign inflow of LKR 147mn. Foreign participation was 36%. Net foreign inflows were seen in John Keells Holdings (LKR 126mn), ACL Cables (LKR 26mn), Commercial Bank (LKR 20mn) while net foreign outflow was mainly seen in Commercial Bank non-voting (LKR 18mn).

Meanwhile, at the treasury bill auction, three month rate increased by 5bps to 8.60% and six month rate advanced to 9.46% (+7bps). One year treasury yield improved by 8bps to 10.19%. CBSL received bids amounting to LKR 41.8bn and it was decided to accept LKR 4.2bn worth of Treasury bills.
Source: LSL