Colombo Stock Exchange Market Review – 27th Oct 2016

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Colombo Stock Exchange Trade Summary 27-Oct-2016

Colombo bourse closed in opposite directions on Thursday with lackluster activity levels. All Share index advanced slightly by 3.61 index points or 0.06% to end at 6,438.50 while S&P SL20 edged lower by 1.76 index points or 0.05% to close at 3,584.06.

Gains recorded in Bukit Darah (closed at LKR 290.00, +3.7%), Dialog Axiata (closed at LKR 11.60, +0.9%) and Ceylon Guardian Investment Trust (closed at LKR 125.00, +6.3%) contributed positively to the index. However, price depreciation in Carson Cumberbatch (closed at LKR 184.00, -3.0%) and Commercial Bank (closed at LKR 146.20, -0.5%) impacted the index gains.

Daily market turnover was LKR 205mn with absence of negotiated deals. Dialog Axiata was the contributor to the turnover with LKR 24mn followed by Ceylinco Insurance (LKR 21mn), Tokyo Cement non-voting (LKR 15mn) and Tokyo Cement (LKR 11mn) respectively.

Gainers outweighed the losers 66 to 49, while 81 counters remained unchanged. High investor activity was witnessed in Teejay Lanka, Dunamis Capital, First Capital and Access Engineering.

Alumex advanced to LKR 20.60 but closed at LKR 20.50 (+0.5%) supported by favorable quarter results. Further, Keells Food Products declined to 159.80, -0.8% amid the profit decline in 2QFY17.

Foreign investors were net sellers with a net foreign outflow of LKR 18mn. Foreign participation was 21%. Net foreign outflows were seen in Commercial Bank non-voting (LKR 6mn), Teejay Lanka (LKR 5mn) and Chevron Lubricants (LKR 4mn). Net foreign inflow was mainly seen in Ceylon Tobacco (LKR 4mn).
Source: LSL

Sri Lankan shares edge up in dull trade ahead of govt budget

Reuters: Sri Lankan shares ended slightly firmer on Thursday, hovering near a 12-week closing low hit earlier in the week, in thin trade as investors awaited cues from the government budget and five-year plan as well as corporate earnings.

Prime Minister Ranil Wickremesinghe issued an economic policy statement in the parliament, giving some details of the government's future economic policies, during market hours on Thursday. Dealers said the market was assessing the prime minister's statement.

The benchmark index of the Colombo Stock Exchange ended 0.06 percent, or 3.61 points, firmer at 6,438.50. On Monday, the index had closed at its lowest level since August 1.

Thursday's turnover was 204.7 million rupees ($1.38 million), less than a third of this year's daily average of around 731.3 million rupees.

"Overall market is volatile and will move side ways until the budget," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. "Uncertainty is there and investors are on wait-and-see mode."

Foreign investors sold a net 18.4 million rupees worth of equities on Thursday. The net foreign inflow for the past eleven sessions through Tuesday was 1.23 billion rupees.

They have sold a net 1.81 billion rupees worth of shares this year.

Sri Lanka's quarterly earnings season started two weeks ago, but most locally listed firms report in late October or early November. The national budget is scheduled to be presented on November 10.

Shares in Bukit Darah Company Plc jumped 3.72 percent while Dialog Axiata Plc rose 0.87 percent and Hatton National Bank Plc gained 0.75 percent. 

($1 = 147.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)