Colombo Stock Exchange Market Review – 09th Nov 2016

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Colombo Stock Exchange Trade Summary 09-Nov-2016

Colombo bourse echoed the losses in regional markets amid the surprising outcome of the US presidential election. All Share index shed 21.51 index points or 0.33% to end the session at 6,417.55. High cap constituent, S&P SL20 index lost 26.13 index points or 0.72% to close at 3,588.45.

Premier blue-chips namely, Hatton National Bank (closed at LKR 228.80, -1.8%), John Keells Holdings (closed at LKR 150.00, -0.7%) and Commercial Bank (closed at LKR 147.40, -1.1%) impacted the index performance.

Daily market turnover was LKR 437mn. Several negotiated deals were recorded in Nation Lanka Finance (53.6mn shares at LKR 1.70), Ceylon Tobacco (0.05mn shares at LKR 850.80), Hatton National Bank (0.15mn shares at LKR 233.00) and Tokyo Cement non-voting (0.5mn shares at LKR 51.50). Aggregate value of crossings accounted for 44% of the turnover.

Accordingly, Nation Lanka Finance top the turnover list with LKR 91mn followed by John Keells Holdings (LKR 48mn),Hatton National Bank (LKR 41mn) and Ceylon Tobacco (LKR 39mn) respectively.



Market breadth was negative where out of 200 stocks traded, 92 slipped, 41 advanced while 67 stocks remained unchanged. High investor activity was witnessed in Access Engineering, Textured Jersey, Ceylon Grain Elevators and John Keells Holdings.

Foreign investors were buyers for the sixth straight session with a net foreign inflow of LKR 106mn. Foreign participation was 16%. Net foreign inflows were seen in Hatton National Bank (LKR 39mn), Ceylon Tobacco (LKR 39mn) and John Keells Holdings (LKR 29mn). Net foreign outflow was mainly seen in Tokyo Cement (LKR 4mn).

Meanwhile, at the weekly treasury bill auction, six month treasury rate increased by 9bps to 9.56% while one year yield advanced by 4bps to 10.14%. Three month treasury bill rate remained unchanged at 8.60%. CBSL received bids amounting to LKR 52.9bn and it was decided to accept LKR 10.4bn worth of Treasury bills.

Source: LSL

Sri Lankan shares hit more than 1-wk closing low ahead of budget

Reuters - Sri Lankan shares hit a more than one-week closing low on Wednesday as a surprise win for Republican Donald Trump in the U.S. presidential election weighed on sentiment and as investors turned cautious ahead of the national budget on Thursday.

Investors feared a Trump victory could cause global economic and trade turmoil and years of policy unpredictability, which among other things, will discourage the U.S. Federal Reserve from raising interest rates in December as long expected.

The U.S. dollar, Mexican peso and world stocks began to steady in the European morning though, after having been hammered overnight. Sri Lanka's 2017 budget plan will seek to boost revenue through a capital gain tax on properties, simplify tax collection and offer incentives to spur exports, though progress will depend on the coalition government agreeing on economic priorities, analysts say. The benchmark index of the Colombo Stock Exchange ended 0.33 percent weaker, or down 21.51 points, at 6,417.55, its lowest close since Nov. 1.

"Primary focus will be on our budget," said Danushka Samarasinghe, research head at Softlogic Stockbrokers.

"It will take a few weeks for global markets to settle and during that period there could be volatility in our markets also, a trickle down effect of the global funds."

Turnover stood at 437.2 million rupees ($2.96 million), less than this year's daily average of 713.3 million rupees.

Foreign investors bought beaten down stocks for a sixth straight session, picking up shares worth a net 106.03 million rupees. They have net sold 899.3 million rupees worth of shares so far this year.

Shares in the biggest listed lender, Commercial Bank of Ceylon Plc , fell 1.07 percent, while Hatton National Bank Plc fell 1.80 percent.

Conglomerate John Keells Holdings Plc fell 0.66 percent. 

($1 = 147.5000 Sri Lankan rupees)

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

Colombo Stock Exchange Market Review – 08th Nov 2016

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Colombo Stock Exchange Trade Summary 08-Nov-2016

Colombo bourse closed flat on Tuesday amid thin market activity. Benchmark index dipped slightly by 5.91 index points or 0.09% to end at 6,439.06 while S&P SL 20 index lost 5.32 index points or 0.15% to close at 3,614.58.

Price depreciation high caps, Dialog Axiata (closed at LKR 11.30, -1.7%), John Keells Holdings (closed at LKR 151.00, -0.6%) and Commercial Bank (closed at LKR 149.00, -0.9%) drove the index down.

Daily market turnover was LKR 162mn. Two negotiated deals were recorded in Access Engineering (1.0mn shares at LKR 26.10) and Central Finance (0.2mn shares at LKR 108.00). Aggregate value of crossings accounted for 29% of the turnover.

Accordingly, Access Engineering emerged as the top contributor to the turnover with LKR 45mn followed by Central Finance (LKR 24mn), Ceylon Tobacco (LKR 9mn) and Sampath Bank (LKR 9mn).

Losers outweighed the gainers 67 to 41, while 82 remained unchanged. High investor participation was witnessed in Access Engineering, Ceylon Grain Elevators, Alliance Finance. Ceylon Cold Stores advanced to LKR 721.90 (+2.4%) supported by the interim dividend announcement.

Foreign investors were net buyers for the fifth straight session with a net foreign inflow of LKR 12mn. Foreign participation was 11%. Net foreign inflows were seen in Ceylon Tobacco (LKR 8mn), Ceylon Cold Stores (LKR 4mn), John Keells Holdings (LKR 1mn) while net foreign outflow was mainly seen in National Development Bank (LKR 1mn).

Source: LSL