Colombo Stock Exchange Market Review – 23rd Dec 2016

(Click here)

Colombo Stock Exchange Trade Summary 23-Dec-2016

Colombo equities snapped the eight-day losing streak to close positively on Friday’s session. Market activity was quite thin as most of the investors opted to wait in sidelines ahead of the festive weekend. All Share Index closed 6.91 index points (+0.1%) higher at 6,216.56 while the S&P SL 20 index closed at 3,482.21 with a gain of 4.06index points (+0.1%).

Gains in Cargills Ceylon (LKR 194.40, +2.9%), Hatton National Bank (LKR 222.40, +1.1%) and Expolanka (LKR 6.30, +5.0%) pushed the index towards positive territory. Out of the 173 traded, 55 stocks inclined while 38 counters saw decline in its share price.

Market turnover remained at LKR 125mn as institutional investors remained inactive ahead of the holiday season. Cargills Ceylon (LKR 40mn) and John Keells Holdings (LKR 33mn) made the noteworthy contribution to the turnover while rest of the shares failed to surpass LKR 10mn.

Trading activity was mostly concentrated around John Keells Holdings (LKR 144.60, -0.1%) while Chevron Lubricants (LKR 158.30, - 1.1%), LOLC Finance (LKR 2.70, +3.9%) and Union Bank (LKR 15.20, +1.3%) managed to gain some interest among the investors.

The announcement of the interim dividend of LKR 1.40 by CT Land & Development failed to make any impact on the share and the counter closed flat at LKR 55.00.

Foreign investors were net sellers today with net outflow of LKR 4mn. Top net outflows were seen in John Keells Holdings (LKR 6mn) and Hayleys Fabric (LKR 3mn) while top net inflow was mainly seen in Sampath Bank (LKR 4mn). Foreign participation accounted for 26% of the turnover.

Kindly note that Colombo Stock Exchange will be closed on Monday, (26th December 2016) due to special Bank holiday.

Source: LSL

Sri Lankan shares rise after eight sessions of falls in thin trade

Reuters: Sri Lankan shares edged up on Friday, snapping eight straight sessions of falls and moving away from a more than eight-month closing low hit in the previous session, while turnover was low in holiday-thinned trade as investors stayed away from markets ahead of the Christmas weekend.

The Colombo stock index ended 0.11 percent firmer at 6,216.56 after posting its lowest close since April 6 in the previous session. It shed 2 percent in the eight sessions through Thursday, and declined 0.8 percent this week.

Turnover was near a four-week low at 124.9 million rupees ($835,451.51), around a sixth of this year's daily average of 738 million rupees.

"We may see some window dressings next week, which might help the index move up," said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Sri Lankan markets will be closed on Monday for a bank holiday in lieu of Christmas on Sunday.

Foreign investors, who have been net buyers of 621.5 million rupees of equities, sold a net 4.2 million rupees of shares on Friday.

Cargills (Ceylon) Plc and top conglomerate John Keells Holdings Plc accounted for 59 percent of the day's turnover.

Cargills shares gained 2.9 percent, while Hatton National Bank Plc rose 1.1 percent to boost the overall index. John Keells, however, fell 0.14 percent.

($1 = 149.5000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

Brac Lanka Finance to raise capital with Rs1.32bn rights issue

(LBO) – Sri Lanka’s finance firm, Brac Lanka Finance is to raise 1.32 billion rupees by way of a rights issue, the company said in a stock exchange filing.

Following Central Bank approval, the Directors of Brac Lanka resolved by circular resolution dated 21 December 2016 to increase the capital by way of a rights issue.

Subject to the necessary approvals, the company is to issue 132,190,708 shares at 10 rupees each in the ratio of five new shares for every four shares held.

The proceeds will be utilized to ensure compliance by the Company with the minimum capital requirement as required by the Finance Companies (Risk Weighted Capital Adequacy Ratio) Direction No. 02 of 2006, the company said.

The current stated capital of the Company is 171,180,454 rupees represented by 105,752,566 ordinary shares.

If the rights issue is fully subscribed the stated capital will increase by a further 1,321,907,080 rupees thereby increasing the stated capital to 1,493,087,534 rupees and the number of shares from 105,752,566 to 237,943,274.

Sri Lanka’s securities watchdog, the Securities & Exchange Commission last week instructed the Colombo Stock Exchange to lift the trading ban imposed on Brac Lanka Finance.

The SEC earlier imposed a trading suspension on Brac Lanka Finance under section 246 of the Companies Act.

The securities regulator thereafter specified a procedure to provide dissenting shareholders with an opportunity to retain their shares in the company and to continue as shareholders thereof.

The CSE said in a stock exchange notification last week that the SEC has informed them that the specified procedure has been duly followed by the company.