Colombo Stock Exchange Market Review – 12th Oct 2016

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Colombo Stock Exchange Trade Summary 12-Oct-2016

Colombo bourse concluded the session with negative returns on Wednesday. The ASI closed red for the third consecutive day with a loss of 28.10 index points (0.4%) at 6,510.18. The S&P SL 20 index closed at 3,638.08, a drop of 12.01 index points or 0.3%.

Price decline in Sri Lanka Telecom (LKR 37.10,-1.9%), Ceylon Tobacco (LKR 850.50,0.8%), Hatton National Bank (LKR 228.00,-1.3%) and John Keells Holdings (LKR 154.80,-0.4%) impacted adversely to the index performance.

Daily market turnover was LKR 609mn. Top contributions to the turnover came from LB Finance (LKR 232mn) supported by a crossing of 1.6mn shares at LKR 127.00. Further, HNB- voting made a contribution of LKR 72mn with a crossing of 0.3mn shares at LKR 229.00. Teejay Lanka (LKR 60mn) and Hemas Holdings (LKR 36mn) made noteworthy contributions to the turnover.

Market sentiments were mostly negative with losers outweighing gainers 109 to 27. Retail investor activity was concentrated on Bogala Graphite, Teejay Lanka and Tokyo Cement – nonvoting.

Foreign investors were net buyers with a net inflow of LKR 270mn. Foreign participation was 34% Top net inflows were seen in LB Finance (LKR 203mn), Teejay Lanka (LKR 46mn) and HNB – voting (LKR 13mn). Top net outflows were mainly seen in Richard Peiris & Co (LKR 1mn).

Source: LSL

Sri Lankan shares end at 2-week low ahead of corporate results

Reuters: Sri Lankan shares hit a two-week closing low on Wednesday, their third straight session of losses, as increased risk appetite by foreign investors failed to offset selling pressure on index heavyweights and financials ahead of corporate results.

Trading volumes were moderate as cautious investors waited for announcements of corporate results for the September quarter starting later this month and for direction on economic policy when the country's budget is unveiled early November, brokers said.

The benchmark index of the Colombo Stock Exchange ended 0.43 percent weaker at 6,510.18, its lowest close since Sept. 27.

"Similar sentiment will prevail until the next month budget," said Prasad Fernando, CEO at Acuity Research.

Turnover was 609.3 million rupees ($4.16 million), less than this year's daily average of around 750 million rupees.

Foreign investors, who have sold a net 2.46 billion rupees worth of shares so far this year, bought a net 270 million rupees worth equities on Wednesday.

Top fixed-line phone operator Sri Lanka Telecom lost 1.85 percent, while John Keells Holdings fell 0.39 percent.

Hatton National Bank and L B Finance, both of which accounted for around 50 percent of the turnover mainly due to purchases by foreign investors, ended 1.34 percent and 0.08 percent weaker, respectively.

($1 = 146.3700 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)