Colombo Stock Exchange Market Review – 01st Dec 2016

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Colombo Stock Exchange Trade Summary 01-Dec-2016

Colombo bourse surged on month’s opening day partly supported by the drop in treasury yields after four weeks. ASI recorded its highest intra-day gain in four months to close at 6,309.04 (+67.94 index points, +1.09%). High cap S&P SL 20 index raced to 3,500 mark and closed at 3,508.44, with an increase of 41.34 index points or 1.19%.

Blue-chips namely, Ceylon Cold Stores (closed at LKR 799.80, +3.6%), John Keells Holdings (closed at LKR 150.00, +1.2%) and Lanka Orix Leasing (closed at LKR 77.70, +6.0%) pushed the index higher along with banks where Commercial Bank (+1.4%), Sampath Bank (+1.3%), Hatton National Bank (+0.1%), National Development Bank (+2.2%) and DFCC Bank (+2.4%) posted notable gains.

John Keells Holdings (LKR 699mn) drove the turnover to LKR 1.2bn supported by hefty crossings of 2.1mn shares which changed hands at LKR 149.00. Further, Commercial Bank (LKR 156mn) and Hatton National Bank (LKR 111mn) made noteworthy contribution.

Another two crossings were seen in Hatton National Bank (0.35mn shares at LKR 218.50) and accordingly, aggregate value of crossings accounted for 33% of the turnover.

Reflecting the positive sentiments, gainers offset the losers 124 to 18, while 47 scripts remained unchanged. Retail investor attention was retained by Commercial Credit & Finance and John Keells Holdings. Decline in treasury rates draw the investors to First Capital Holdings (+6.8%) and its parent company, Dunamis Capital (+11.5%).

Among the top losers, Pan Asia Bank declined by 3.2%, subsequent to the right issue. Bank intends to raise LKR 2.1bn through issue of 147.5mn rights to meet regulatory capital requirements.

Meanwhile, CIC Holdings declared an interim dividend of LKR 1.00 per share.

Foreign investors were net buyers with a net inflow of LKR 45mn. Foreign participation was 70%. Net foreign inflows were seen in John Keells Holdings (LKR 47mn), Nations Trust Bank (LKR 12mn) and Tokyo Cement non-voting (LKR 9mn). Net foreign outflow was mainly seen in Hatton National Bank (LKR 26mn).
Source: LSL

Sri Lanka shares end 1 pct higher; foreign buying seen

Reuters: Sri Lankan shares jumped more than 1 percent on Thursday as investors sought bargains in blue-chips and on buying by foreign investors.

The Colombo stock index ended up 1.09 percent at 6,309.04, its highest close since Nov. 18.

The index hit a near-eight-month low on Tuesday on concerns that the proposed hike in various taxes and fees would reduce disposable income and challenge consumption-led growth.

Foreign investors bought a net 45.4 million rupees ($306,860.43) worth of shares on Thursday, but have been net sellers of 1.59 billion rupees worth of shares so far this year.

Turnover stood at 1.18 billion rupees, more than this year's daily average of 696.8 million rupees.

"Market is very bullish with continued foreign buying," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

"Early morning buying in John Keells boosted confidence levels and brought the buying in to the market. Excess liquidity in the banking system is also helping the market."

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees year-on-year and meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

The market shrugged off the central bank's monetary policy decision on Tuesday to keep rates unchanged. Brokers said investors are concerned about sustainability of rates.

Shares of biggest listed lender Commercial Bank of Ceylon Plc jumped 1.43 percent while Colombo Cold stores Plc rose 3.59 percent and conglomerate John Keells Holdings Plc rose 1.15 percent. 

($1 = 147.9500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Sunil Nair)

Sri Lanka's Treasuries yields down, bonds up

ECONOMYNEXT - Sri Lanka's Treasuries yield eased at Wednesday's auction with the 12-month yield dropping 15 basis points to 10.10 but short term bonds rose in the secondary market amid foreign selling, dealers said.

The debt office said it sold 1.03 billion rupees of 3-month bills for 8.60 percent unchanged from last week.

The 6-month yield fell 06 basis points to 9.55 percent.

The debt office sold 15.73 billion rupees of bills.

In the secondary market short term bonds rose amid foreign selling dealers said.

2-year bonds were traded up to 11.50 percent and were quoted at 11.45/55 late Wednesday up from 11.35/45 percent levels.

3-year bonds were traded up to 11.75 percent and were quoted at 11.70/75 percent, up from yesterday's 11.60/70 percent, dealers said.