Colombo Stock Exchange Market Review – 7th Feb 2017

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Colombo Stock Exchange Trade Summary 07-Feb-2017

Central Bank’s decision to maintain the current policy rates pushed the Colombo bourse higher on Tuesday. All Share index gained 24.73 index points (0.41%) to end at 6,093.04. Similarly, high cap constituent, S&P SL20 index advanced by 11.76 index points or 0.46% to close at 3,478.08.

Nestle (LKR 2,000.00, +2.6%) spearheaded index gains along with John Keells Holdings (LKR 143.60, +1.2%), Sri Lanka Telecom (LKR 35.20, +3.5%) and Hemas Holdings (LKR 105.00, +2.9%).

Daily market turnover was LKR 500mn. Hemas Holdings contributed majority of the turnover (LKR 104mn) underpinned by a single crossing of 0.7mn shares at LKR 104.00. Swisstek (LKR 96mn), Teejay Lanka (LKR 83mn) and John Keells Holdings (LKR 64mn) made notable contribution.

Negotiated deals were recorded in Swisstek (1.3mn shares at LKR 67.00), Teejay Lanka (LKR 0.9mn shares at LKR 38.00) and John Keells Holdings (0.2mn shares at LKR 144.50). Aggregate value accounted for 44% of the turnover.

Market breadth was positive where out of 200 stocks traded, 81 advanced, 49 slipped while 70 remained unchanged. High investor preference was seen in Teejay Lanka and John Keells Holdings. Teejay Lanka advanced to LKR 38.90, +3.7%. Hemas Holdings, Dialog Axiata and Access Engineering were among heavily traded stocks.

Foreign investors stood on buy side with a net foreign inflow of LKR 111mn. Net foreign inflows were seen in John Keells Holdings (LKR 51mn), Hemas Holdings (LKR 30mn), Nestle (LKR 28mn) while net foreign outflow was mainly seen in National Development Bank (LKR 4mn). Foreign participation was 52%.

Meanwhile, at the Treasury bill auction today, yields advanced across the board. Three month treasury rate increased by 8bps to 9.16% and six month treasury rate increased by 2bps to 10.07%. One year yield advanced by 5bps to 10.47%. CBSL offered LKR 27bn worth Treasury bills and the auction was oversubscribed by 2.1 times with bids received amounting to LKR 57.5bn. It was decided to accept LKR 19.9bn worth of treasury bills.

Source: LSL