Colombo Stock Exchange Market Review – 10th Oct 2016

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Colombo Stock Exchange Trade Summary 10-Oct-2016

Colombo bourse closed lower on Monday amid lackluster trading session. All Share index declined by 19.84 index or 0.30% to end at 6,562.50 while 20-scrip S&P SL index marginally dipped by 3.25 index points or 0.09% to close at 3,661.23.

Price depreciations in Nestle Lanka (closed at LKR 2,013.00, -4.2%), Ceylon Tobacco (closed at LKR 865.00, -0.6%) and Commercial Credit & Finance (closed at LKR 65.60, -3.5%) drove the index down. Ceylon Cold Stores (closed at LKR 641.70, +1.6%) and Asian Hotels & Properties (closed at LKR 62.00, +3.2%) contributed positively to the index.

Daily market turnover was LKR 336mn. John Keells Holdings (LKR 48mn) was the top contributor to the turnover with LKR 48mn followed by Ceylon Tobacco (LKR 46mn), Lanka Developments (LKR 28mn) and Tokyo Cement (LKR 28mn). No crossings were recorded during the day. 

Market breadth was negative where out of 215 stocks, 78 slipped and 48 advanced. Lankem Developments attracted high investor attention and counter closed with a gain of 11.6% at LKR 4.80. Seylan Developments, Commercial Credit & Finance and Galadari Hotels witnessed heavy investor activity.

Foreign investors were net sellers with a net outflow of LKR 8mn. Foreign participation was 29%. Net foreign outflows were seen in Tokyo Cement (LKR 15mn), Nestle Lanka (LKR 6mn), Seylan Developments (LKR 1mn) while net foreign inflow was mainly seen in Sampath Bank (LKR 3mn).

Source: LSL

Sri Lankan shares end slightly weaker; turnover touches 3-wk low

Reuters: Sri Lankan stocks edged down on Monday, led by blue chips on profit-taking, while trading volume fell to a three-week low as investors stayed on the sidelines awaiting direction from the budget and September-quarter corporate results.

The benchmark index of the Colombo Stock Exchange finished 0.3 percent weaker at 6,562.50.

Turnover was 336.2 million rupees ($2.30 million), the lowest since Sept. 19, and less than half of this year's daily average of around 751 million rupees.

Investors are not willing to sell at lower prices, resulting in lower volume, said Prashan Fernando, CEO at Acuity Research.

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

"Investors will make their moves depending on corporate earnings in the September quarter," Fernando added.

A number of companies are expected to report their September-quarter results later this month, stockbrokers said.

Foreign investors sold a net 7.7 million rupees worth of shares on Monday, extending the net foreign outflow to 2.97 billion rupees so far this year.

Shares of Nestle Lanka Plc fell 4.15 percent, while leading fixed-line phone operator Sri Lanka Telecom dropped 1.05 percent.

($1 = 146.3700 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)