Colombo Stock Exchange Market Review – 14th Dec 2016

(Click here)

Colombo Stock Exchange Trade Summary 14-Dec-2016

Colombo Bourse opened the holiday shortened week on a negative note with both indices closing in red for the second straight day. ASI closed 25.09 index points (-0.4%) lower at 6,299.01 while S&P SL 20 index lost 14.40 index points (-0.4%) to close at 3,540.62.

Premier blue-chip, John Keells Holdings (closed at LKR 151.90, -1.4%) drove the index down along with Sri Lanka Telecom (closed at LKR 33.90, -3.1%) and Asiri Hospital Holdings (closed at LKR 26.80, -5.0%). However, gains in Nestle Lanka (closed at LKR 2,050.10, +1.0%) & Ceylon Tobacco (closed at LKR 865.00, +0.5%) managed to ease the index losses.

Despite the negative sentiments, the foreign activity pushed the turnover to LKR 1.1bn. Crossings in selected blue-chips accounted for 76% of the total turnover.

Negotiated deals were recorded in Chevron Lubricants (3.0mn shares at LKR 158.50), Commercial Bank (1.0mn shares at LKR 145.00), Nestle Lanka (0.05mn shares at LKR 2,050.00), Ceylon Cold Stores (0.09mn shares at LKR 742.00), Richard Pieris (7.9mn shares at LKR 8.00), Access Engineering (1mn shares at LKR 25.00) and Ceylon Grain Elevators (0.3mn shares at LKR 82.00) respectively.

Accordingly, Chevron Lubricants emerged as the top contributor to the turnover with LKR 481mn followed by Commercial Bank (LKR 188mn), Richard Pieris (LKR 111mn) and Nestle Lanka (LKR 110mn) respectively. 

Market breadth was negative where out of 192 stocks traded, 89 slipped, 29 advanced while 74 stocks remained unchanged. High investor activity was seen in Lanka IOC, Commercial Credit & Finance, John Keells Holdings and Chevron Lubricants. Chilaw Finance advanced to LKR 21.80, subsequent to the announcement on amalgamation with Richard Pieris Finance Limited.

Foreign investors were net sellers with a net foreign outflow of LKR 556mn. Foreign participation was 56%. Net foreign outflows were seen in Chevron Lubricants (LKR 480mn), Richard Pieris (LKR 104mn), Teejay Lanka (LKR 9mn) while net foreign inflow was mainly seen in Access Engineering (LKR 25mn).

At the weekly treasury bill auction, one year treasury rate increased by one basis point to 10.11% while six month rate remained at 9.56%. However, three month bills were rejected by the Central Bank. CBSL offered LKR 24bn worth of bills and auction was oversubscribed by 1.7 times. CBSL accepted LKR 6.2bn worth of treasury bills.
Source: LSL

Sri Lankan shares hit 2-wk closing low; blue chips weigh

Reuters: Sri Lankan shares closed at their lowest in two weeks on Wednesday as foreign investor outflows and losses in blue chips led by market heavyweight John Keells Holdings Plc weighed on sentiment.

The Colombo stock index closed 0.4 percent weaker at 6,299.01, its lowest close since Nov. 30.

"There was a lot of foreign activities, which boosted the day's turnover. We will not see any sentimental change until the next year," said Prashan Fernando, CEO at Acuity Stockbrokers.

Foreign investors sold a net 556.1 million rupees ($3.75 million) worth of shares on Wednesday, with the year-to-date net foreign inflow in shares declining to 469.9 million rupees.

Turnover was 1.19 billion rupees ($8.02 million), higher than this year's daily average of 750.3 million rupees.

Investors were concerned over proposed increases in various taxes and fees in the 2017 budget, which was passed on Saturday, that would reduce disposable income and challenge consumption-led growth, brokers said.

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

Shares of John Keells Holdings Plc fell 1.36 percent, while top fixed line phone operator Sri Lanka Telecom lost 3.14 percent. 

($1 = 148.3000 Sri Lankan rupees) 

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