Colombo Stock Exchange Market Review – 05th Oct 2016

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Colombo Stock Exchange Trade Summary 05-Oct-2016

Colombo bourse snapped the six day winning streak on Wednesday amid profit taking in selected counters. All Share index started the day with a gain of 16 points but failed to retain the momentum and closed the session at 6,579.78, down by 11.63 index points or 0.18%. High cap constituent, S&P SL20 index closed slight above the previous close with an increase of 1.64 index points or 0.05% at 3,643.58.

Ceylon Tobacco (closed at LKR 870.00, -0.9%) dragged the index down as the share price fell in reaction to the LKR 7.00 tax increase on cigarette imposed yesterday. Commercial Credit & Finance turned red today after gaining 36% in prior session and counter closed with a loss of 6.2% at LKR 68.30.

However, the gains in John Keells Holdings subsequent to the interim dividend announcement eased the pressure on the index. Company declared a dividend of LKR 2.00 per share which will XD on 13th October 2016. JKH share closed at LKR 156.00, +0.6%.

Daily market turnover was LKR 503mn. Negotiated deals were recorded in Browns Investments (20mn shares at LKR 1.40 per share) and C.W.Mackie (1mn shares at LKR 53.00) and the crossings represented 16% of the total turnover.

Sampath Bank emerged as the top contributor to the turnover with LKR 68mn followed by Commercial Credit & Finance (LKR 63mn), C.W.Mackie (LKR 54mn) and John Keells Holdings (LKR 51mn).

Market breadth was negative where 74 scripts slipped while 53 scripts advanced. High investor activity was witnessed in Commercial Credit & Finance for the second straight day. First Capital Holdings, John Keells Holdings and Marawila Resorts were among heavily traded counters.

Foreign investors were net sellers with a net foreign outflow of LKR 79mn. Foreign participation was 16%. Net foreign outflows were seen in Sampath Bank (LKR 61mn), John Keells Holdings (LKR 16mn), Hatton National Bank (LKR 12mn) while net foreign inflow was mainly seen in Chevron Lubricants (LKR 13mn).

Meanwhile, at the treasury bill auction today, yields across the board remained steady. Three month rate was 8.55%, six month rate was 9.39% while one year treasury rate was 10.11%. CBSL received bids amounting to LKR 54.5bn and it was decided to accept LKR 18.8bn worth of Treasury bills.

Source: LSL