Sri Lankan shares close below key level of 6,500

Reuters: Sri Lankan shares closed below a key psychological level of 6,500 on Thursday in thin trade as most investors stayed on the sidelines awaiting directions from corporate results and the budget scheduled for early next month.

The benchmark index of the Colombo Stock Exchange fell for a fourth straight session and ended 0.35 percent weaker at 6,487.13, its lowest close since Sept. 27. It has shed 1.45 percent in the past four sessions.

"Investors will wait for clear directions on capital gain tax (in the budget)," said Prashan Fernando, CEO at Acuity Stockbrokers. "So until the budget, we may see low-volume trade."

Turnover was 372.2 million rupees ($2.54 million), less than half of this year's daily average of around 750 million rupees.

Foreign investors, who have sold a net 2.37 billion rupees ($16.19 million) worth of shares so far this year, bought a net 88.7 million rupees worth equities.

Trading volumes have been low 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.

Top conglomerate John Keells Holdings fell 1.36 percent, while private lender Commercial Bank of Ceylon dropped 0.47 percent.

($1 = 146.3700 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

Colombo Stock Exchange Market Review – 13th Oct 2016

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Colombo Stock Exchange Trade Summary 13-Oct-2016

Colombo equity market concluded another lackluster trading session on Thursday with both indices closing on negative territory for the fourth straight session. All share index down by 23.05 index points or 0.35 % to end at 6,487.13 while S&P SL20 index lowered by 22.60 index points or 0.62% to conclude at 3,615.48.

Price declines in high caps namely John Keells Holdings (closed at LKR 152.70, -1.4%), Ceylon Cold Stores (closed at LKR 616.30, -2.6%) and Dialog Axiata (closed at LKR 11.40, -0.9%) impacted the index negatively.

Daily market turnover was LKR 372mn. Top turnover for the day was recorded in Commercial Bank with LKR 72mn. National Development Bank (LKR 51mn), Ceylon Tobacco (LKR 45mn) and John Keells Holdings (LKR 30mn) were among contributors to the turnover.

Off-the-floor dealings were recorded in Commercial Bank (0.4mn shares at LKR 148.00), National Development Bank (0.3mn shares at LKR 165.00) and Ceylon Tobacco (0.05mn shares at LKR 850.00). Accordingly, aggregate value of crossings accounted for 41% of the turnover.

Market breadth was negative where out of 206 stocks, 102 slipped, 30 advanced while 74 remained unchanged. High investor activity was witnessed in Access Engineering, Teejay Lanka and John Keells Holdings.

Meanwhile, Chevron Lubricants declared a fourth interim dividend of LKR 3.50 per share. Counter closed the day with a loss of 0.6% at LKR 168.00.

Foreign investors were net buyers for the day with a net foreign inflow of LKR 89mn. Foreign participation was 28%. Net foreign inflows were seen in Commercial Bank (LKR 69mn), Nations Trust Bank (LKR 11mn), Bairaha Farms (LKR 6mn) while net foreign outflow was mainly seen in Tokyo Cement (LKR 2mn).

Source: LSL