Colombo Stock Exchange Market Review – 07th Oct 2016

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Colombo Stock Exchange Trade Summary 07-Oct-2016

Colombo bourse wrapped the weekly operations in greener territory despite low investor activity. Benchmark index bagged 15.38 index points or 0.23% to end the session at 6,582.34 while 20-scrip S&P SL index increased by 18.35 index points or 0.50% to close at 3,664.48.

Commercial Bank (closed at LKR 148.50, +1.8%) head the index gains along with Dialog Axiata (closed at LKR 11.60, +0.9%) and John Keells Holdings (closed at LKR 157.50). Price drops in Asian Hotels & Properties (closed at LKR 60.10, -1.6%) and Central Finance (closed at LKR 113.00, -1.4%) impacted negatively to the index performance.

Daily market turnover recorded two week low of LKR 388mn. Cargills emerged as the top contributor to the turnover with LKR 47mn underpinned by a single crossing of 0.3mn shares at LKR 175.00. Tokyo Cement (LKR 34mn), LB Finance (LKR 26mn) and Commercial Bank (LKR 26mn) were among top contributors.

Gainers outweighed the losers 66 to 59, while 83 scripts remained unchanged. High investor activity was witnessed in Galadari Hotels and counter closed with a gain of 4.2% at LKR 12.50. John Keells Holdings, Tokyo Cement non-voting and Commercial Credit & Finance were among heavily traded counters.

Foreign investors closed the session on sell side with a net foreign outflow of LKR 56mn. Foreign participation was 19%. Net foreign outflows were seen in Cargills (LKR 46mn), Tokyo Cement (LKR 19mn) and Richard Pieris (LKR 4mn). Net foreign inflow was mainly seen in Hatton National Bank (LKR 7mn).

Source: LSL

Sri Lankan shares end higher; trading volume slumps to near 3-wk low

Reuters: Sri Lankan stocks edged up on Friday, after two successive sessions of losses, but the trading volume slumped to a near three-week low as investors awaited direction from the budget and corporate earnings.

The benchmark index of the Colombo Stock Exchange finished up 0.23 percent at 6,582.34.

"Investors are still positive and the outlook is bullish. Thin volume is because market interest rates are rising on tight liquidity," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

"Going forward, better earnings in construction sector and select blue-chips will boost sentiment."

Turnover was 387.3 million rupees ($2.65 million), its lowest since Sept. 19, and around half of this year's daily average of around 755 million rupees.

Stockbrokers have said the market might see lower-trading volumes as many investors await direction from the budget, scheduled for Nov. 10, and the government's long-term economic policy announcement.

Foreign investors bought a net 55.9 million rupees worth of shares on Friday, but have sold a net 2.85 billion rupees worth of equities so far this year.

Shares in top lender Commercial Bank of Ceylon gained 1.4 percent, while the leading mobile operator Dialog Axiata ended up 0.9 percent.

($1 = 146.2500 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Sherry Jacob-Phillips)

Sri Lanka to build second refinery jointly with India - oil minister

NEW DELHI, Oct 6 (Reuters) - Sri Lanka will build a second refinery in a tie-up with Indian companies, energy minister Chandima Weerakkody said on Thursday, a move that would strengthen New Delhi's engagement with Colombo.

"We are refurbishing our existing refinery as well, and we are moving towards our second refinery jointly with India," Weerakkody told Reuters.

Weerakkody is in India as part of the Sri Lankan Prime Minister Ranil Wickremesinghe's delegation for bilateral talks between the two countries this week.

The energy minister said the capacity of the refinery and the cost of the project have yet to be decided.

Weerakkody also said his New Delhi counterpart Dharmendra Pradhan on Thursday indicated that the Indian government has agreed to convert a 500 megawatt coal power plant in the eastern port city of Trincomalee to natural gas.

The coal project was given to Indian state-run utility firm NTPC earlier.

Sri Lanka's Sanken to start building 500-apartment twin tower

ECONOMYNEXT - Capitol Development Limited, a unit of Sri Lanka's Sanken construction group, said it had completed the purchase of land in Sri Lanka's capital Colombo to build an apartment complex that will house 500 units in two towers.

The 'Capitol Twin Peaks' branded project will be ready for occupation around 2020, the firm said.

Designed by P&T Architects of Singapore, Capitol Twin Peaks will be built by Sanken.

"Capitol TwinPeaks meets the demands being set for urban, aspirational living in a rapidly developing economy," Mahen Weerasekara, chairman of Capitol Developers, said in a statement.

Capitol Developers said it had already completed Capitol Residencies in Dharmapala Mawatha, Colombo 07; HR Residencies on Havelock Rd, Colombo 05; Tulasi Mahal Apartments in Jaffna; business city hotel, Cinnamon Red in Colombo 03; Capitol 7 in Rosmead Place, Colombo 07; and Capitol Elite in Horton Place, Colombo 07

Sri Lanka plans 20MW hydro power plant on Seethawaka River

ECONOMYNEXT - Sri Lanka is planning a 20MegaWatt hydro power plant in Seethawaka River, a tributary of the Kelani River system, which could potentially generate about 50 GigaWatt hours of energy.

The cabinet of ministers had given the nod for Power Minister Ranjith Siyambalapitiya to engage Central Engineering Consultancy Bureau, a state-run firm, for expert services for the project, the state information service said.

The hydro power station is to be located in the Hingurlakanda village in Dehiowita in the Kegalle District.

The power ministry had earlier said it will cost around $60 million to build, and it will be classified as a mini-hydro plant.

Sri Lanka has run out locations for large electric power stations.

Several hydro power locations, including Kukule Ganga, had been built with shorter-than-optimum dams due to protests from environmentalists.

The Kelani River system, which runs on the Western side of Sri Lanka's central hills (wet zone), has high rainfall even during monsoons.

Sri Lanka's Elephant House to bottle fizzy drinks in the UK

ECONOMYNEXT - Sri Lanka's Elephant House plans to sell its fizzy drinks in the UK and European countries through a bottling deal struck with a UK firm, the company said.

The UK bottler will produce Necto, Cream Soda and Orange Barley branded drinks in 1.5 litre plastic bottles.

The initiative is backed by Universal Suppliers Limited, the firm's beverages distributor in Europe.

Elephant House said it had been exporting drinks to the UK, Switzerland, France, Germany, Norway, Italy, Belgium, Denmark and the Czech Republic for 13 years.

The UK bottling facility will help expand markets in Switzerland, France, Italy and Germany, the firm said in a statement.

Elephant House said sales are growing at Tesco and Asda chains in the UK.

The firm did not give volume or value of sales.