Colombo Stock Exchange Market Review – 05th Dec 2016

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Colombo Stock Exchange Trade Summary 05-Dec-2016

The bullish investor sentiment continued for the fourth straight day as benchmark index hit 3 week high on Monday. All Share index gained 42.55 index points or 0.67% to end the session at 6,368.12 while high caps bagged 34.04 index points (+0.97%) to close the S&P SL20 index at 3,555.85.

Blue-chips such as Nestle Lanka (closed at LKR 2,052.40, +1.9%), Asiri Hospital Holdings (closed at LKR 28.00, +5.7%) led the index gains along with banks namely, Commercial Bank (closed at LKR 144.10, +1.3%), National Development Bank (closed at LKR 160.00, +1.9%) and DFCC Bank (closed at LKR 125.00, +2.5%).

Daily market turnover crossed LKR 1bn, boosted by negotiated deals recorded in John Keells Holdings (0.3mn shares at LKR 151.00) and DFCC Bank (1.4mn shares at LKR 117.70). Aggregate value of crossings accounted for 21% of the turnover.

Half of the total turnover was contributed by the John Keells Holdings (LKR 526mn). Among the other top contributors were DFCC Bank (LKR 180mn), Commercial Credit & Finance (LKR 106mn) and Teejay Lanka (LKR 52mn).

Reflecting the positive sentiments, gainers outweighed the losers 100 to 43 while 73 scripts remained unchanged. Investors gathered around Commercial Credit & Finance and the counter advanced to LKR 70.10 (+9.9%). John Keells Holdings, Ceylon Grain Elevators and Access Engineering were among highly traded counters.

Foreign investors were net buyers with a net inflow of LKR 14mn. Foreign participation was 56%. Net foreign inflows were seen in John Keells Holdings (LKR 138mn), Teejay Lanka (LKR 50mn), Ceylon Grain Elevators (LKR 8mn) while net foreign outflow was mainly seen in DFCC Bank (LKR 177mn).
Source: LSL

Sri Lanka shares hit near 3-wk high; banks lead

Reuters: Sri Lankan shares rose for a third straight session on Monday to close at a near three-week high as investors sought bargains in banking shares after the benchmark index fell to a near eight-month low last week.

The Colombo stock index gained 0.67 percent or 42.55 points to 6,368.12, its highest close since Nov. 15. The bourse gained 1.17 percent last week, recording its first weekly gain in four.

The banking index rose 1.35 percent with Commercial Care Plc leading the gains to end 9.87 percent higher. The island nation's biggest listed lender, Commercial Bank of Ceylon Plc, rose 0.14 percent.

"We have seen the high net worth and institutional investors taking opportunity of the oversold market and are grabbing fundamentally sound shares," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.

Foreign investors bought a net 13.5 million rupees worth of shares on Monday, but they have been net sellers of 1.83 billion rupees worth of shares so far this year.

Turnover stood at 1.02 billion rupees ($6.89 million), well above this year's daily average of 699.4 million rupees.

The index had 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.

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.

Brokers said investors were concerned about the sustainability of rates after the central bank on Tuesday kept key rates unchanged.

Shares of Asiri Hospitals rose 3.11 percent while conglomerate John Keells Holdings Plc rose 0.67 percent. 

($1 = 148.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Vyas Mohan)