Colombo Stock Exchange Market Review – 21st Oct 2016

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Colombo Stock Exchange Trade Summary 20-Oct-2016

Colombo stock market wrapped the week’s operations in a positive note on Friday amid higher institutional participation. All Share index closed with a gain of 5.17 index points or 0.08% to end at 6,447.53 while 20-scrip S&P SL20 index closed at 3,594.59 with a slight gain of 1.42 index points or 0.04%.

Sri Lanka Telecom (closed at LKR 37.10, +2.8%) headed the index gains along with Lanka Orix Leasing Company (closed at LKR 81.00, +1.8%) and Asian Hotels & Properties (closed at LKR 59.20, +2.1%). Two illiquid counters namely, CT Holdings (closed at LKR 121.00, -3.2%) and Carson Cumberbatch (closed at LKR 182.00, -1.6%) negatively impacted the index performance.

Daily market turnover recorded a three week high of LKR 1.15bn supported by hefty crossings. Dialog Axiata was the top contributor to the turnover with LKR 270mn followed by Hemas Holdings (LKR 257mn), Panasian Power (LKR 225mn) and Hatton National Bank (LKR 102mn).

Negotiated deals were recorded in Dialog Axiata (20.8mn shares at LKR 11.60), Panasian Power (75mn shares at LKR 3.00), Hemas Holdings (1.9mn shares at LKR 107.00) and Watawala Plantations (1.0mn shares at LKR 20.00). Aggregate value crossings accounted for 60% of the turnover.

Market breadth was positive where out of 196 counters traded, 71 advanced while 57 declined. High investor activity was witnessed in Tokyo Cement non-voting, Access Engineering, John Keells Holdings and Teejay Lanka.

Foreign investors stood on buy side for the ninth straight session with a net foreign inflow of LKR 234mn. Foreign participation was 49%. Net foreign inflows were seen in Hemas Holdings (LKR 206mn), Hatton National Bank (LKR 22mn) and Watawala Plantations (LKR 20mn). Net foreign outflow was mainly seen in Dialog Axiata (LKR 51mn). 

Source: LSL

Sri Lankan shares edge up on foreign buying, turnover hits near 3-wk high

Reuters: Sri Lankan shares ended slightly firmer on Friday, edging up from their lowest close in 1 month hit in the previous session, as foreign investors bought risk assets ahead of a flurry of corporate results and next month's national budget.

Sri Lanka's quarterly earnings season started last week but the bulk of locally listed firms will not report until late October or early November.

The national budget is scheduled to be presented on Nov. 10.

The benchmark index of the Colombo Stock Exchange ended 0.08 percent or 5.17 points firmer at 6,447.53, up from its lowest close since Sept. 20 hit on Thursday. The index fell 0.54 percent on the week, its second straight weekly loss.

Turnover stood at 1.15 billion rupees ($7.81 million), the highest since Oct. 3 and more than this year's daily average of around 741.5 million rupees.

"Today the market was a bit positive with some foreign inflows. Even though the quantity was low the foreign interest was there," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Stockbrokers said the stock market was also digesting political concerns over the resignation of the head of Sri Lanka's anti-corruption body on Monday, a few days after President Maithripala Sirisena implied that the agency was favouring the rival party of his prime minister.

This is likely to delay one of the promises of Sirisena's coalition government to eliminate corruption and could hurt business confidence, analysts said.

Foreign investors bought a net 233.8 million rupees worth equities on Friday, extending the net foreign inflow for the past nine days to 1.15 billion rupees worth of shares.

They have sold a net 1.82 billion rupees worth of shares so far this year.

Shares in Sri Lanka Telecom Plc rose 2.77 percent, while top conglomerate John Keells Holdings Plc ended steady. 

($1 = 147.2000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)