Colombo Stock Exchange Market Review – 31st Oct 2016

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Colombo Stock Exchange Trade Summary 31-Oct-2016

Colombo bourse closed on negative note ahead of the monetary policy review. All Share index lost 15.62 index points or 0.24% to end at 6,409.23 while 20-scrip S&P SL index shed 12.44 index points or 0.35% to close the session at 3,559.92.

Price depreciations in Dialog Axiata (closed at LKR 11.50, -0.9%), Ceylon Guardian Investment (closed at LKR 116.10, -6.5%) and Commercial Leasing & Finance (closed at LKR 3.60, -2.7%) pinned the index in red zone.

Daily market turnover was LKR 142mn. Panasian Power emerged as the top contributor to the turnover with LKR 31mn underpinned by a single crossings of 10mn shares at LKR 3.00 per share. Commercial Bank (LKR 12mn), Hatton National Bank (LKR 11mn) and Alumex (LKR 11mn) were among top contributors.

Market breadth was negative where out of 208 counters traded, 84 slipped, 43 advanced while 81 remained unchanged. High investor activity was witnessed in Alumex and counter declined by 1.5% to LKR 20.00. People’s Leasing & Finance, Chevron Lubricants and Access Engineering were among highly traded counters.

Lanka Hospitals advanced to LKR 70.50 (+2.9%), subsequent to the dividend announcement. However, Commercial Bank declined by 0.5% to LKR 143.90 despite the first interim dividend of LKR 1.50 per share.

Foreign investors were net buyers with a net foreign inflow of LKR 6mn. Foreign participation was 6%. Net foreign inflows were seen in Asiri Hospital Holdings (LKR 4mn), Sampath Bank (LKR 3mn) and National Development Bank (LKR 2mn). Net foreign outflow was mainly seen in Dialog Axiata (LKR 5mn).

During the month of October, All Share index slipped by 125.54 index points or 1.9% while 20-scrip S&P SL index shed 57.40 index points or 1.6%. Daily average market turnover declined by 39%MoM to LKR 469mn. Foreign investors were net buyers with a net foreign inflow of LKR 1.2bn and foreign participation was 37%.

According to the data released by Department of census and statistics, the annual average inflation rate increased from 3.4% in September to 3.6% in October. The year-on-year change was 4.2% in October against the 3.9% recorded in September.
Source: LSL

Sri Lankan shares fall to 3-mth low ahead of monetary policy

Reuters: Sri Lankan shares ended Monday weaker at a three-month low in thin trade ahead of a monetary policy announcement by the central bank, as the prime minister's plan for improving the investment climate failed to cheer the market.

Sri Lanka's central bank is expected to keep its key interest rates steady later on Monday, a few days ahead of the national budget and the government's five-year policy.

Sri Lanka will introduce concessions on investments and a lower tax regime in its budget to boost faltering investment, generate jobs and remove obstacles to growth for start-up companies, Prime Minister Ranil Wickremesinghe said in an economic policy statement on Thursday.

However, investors continued to await the budget, as well as the central bank's key policy rates and corporate earnings.

"The lower volume and sideways trade will continue until the budget," said Hussain Gani, deputy chief executive at Softlogic Stockbrokers.

"Institutional investors are waiting to see if there would be capital gains tax, as the government proposed some time back, while others are waiting in case of surprises that could have an impact on stocks."

The benchmark index of the Colombo Stock Exchange ended down 0.24 percent, or 15.62 points, at 6,409.23, its lowest close since July 29.

Last week, the index fell 0.35 percent in its third straight weekly fall.

Monday's turnover was 142.4 million rupees ($962,812.71), less than a fifth of this year's daily average of 726.2 million.

Foreign investors were net buyers of 5.7 million rupees worth of equities on Monday, extending the net foreign inflow this month to 1.21 billion rupees.

They have sold a net 1.74 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 set to be presented on Nov. 10.

Shares in Dialog Axiata Plc fell 0.86 percent while Ceylon Guardian Investment Trust Plc fell 6.45 percent and biggest listed lender Commercial Bank of Ceylon Plc fell 0.48 percent. 

($1=147.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Clarence Fernandez)