Colombo Stock Exchange Market Review – 13th Jan 2017

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Colombo Stock Exchange Trade Summary 13-Jan-2017

Investors remained optimistic with the revised outlook by Fitch ratings and EU’s proposal to restore GSP+ status. All Share index touched 6,223 mark but closed at 6,217.72, with a gain of 33.18 index points (+0.5%). 20-scrip S&P SL index advanced by 21.33 index points or 0.61% to end at 3,524.40.

Melstacrop (closed at LKR 68.80, +5.7%) spearheaded the gains along with Sri Lanka Telecom (closed at LKR 36.50, +2.0%) and Singer Sri Lanka (closed at LKR 130.00, +4.0%).

Daily market turnover was LKR 520mn. Majority of the turnover was contributed by Commercial Bank (LKR 122mn) and Melstacrop (LKR 109mn). Chevron Lubricants (LKR 82mn) and Tokyo Cement (LKR 37mn) made noteworthy contribution underpinned by negotiated deals where 0.25mn shares of Chevron Lubricants changed hands at LKR 161.50 while 0.39mn shares of Tokyo Cement changed hands at LKR 59.00. Accordingly, negotiated deals accounted for 12% of the turnover.

Market breadth was positive where out of 203 stocks traded, 98 advanced, 31 slipped and 74 remained unchanged. High investor activity was seen in two textile manufacturers, Hayleys Fabric (LKR 17.00, +3.0%) and Teejay Lanka (LKR 44.40, +0.5%). Melstacorp, Hayleys Fibre and Overseas Realty were among heavily traded counters.

Foreign investors were net buyers with a net foreign inflow of LKR 3mn. Net foreign inflows were seen in Melstacorp (LKR 26mn), Kegalle Plantations (LKR 8mn), Commercial Bank (LKR 2mn) while net foreign outflow was mainly seen in Tokyo Cement (LKR 32mn). Foreign participation for the day was 48%.
Source: LSL

Sri Lankan shares end at 2-wk high on proposed EU trade concession

Reuters: Sri Lankan stocks ended at their highest level in two weeks on Friday, led by beverage and manufacturing shares, as sentiment improved after a European Union executive proposed that the bloc reinstates a trade concession to Sri Lanka.

The European Commission on Wednesday said in a statement that it has proposed increased market access or Generalised Scheme of Preferences Plus (GSP+) for Sri Lanka as a reform incentive. Markets were closed on Thursday on account of a religious holiday.

The Colombo stock index ended 0.54 percent firmer at 6,217.72, its highest close since Dec. 30.

"The regain of GSP plus boosted the market. Investors were positive over the news, but we wont think it will last long because of the rising market interest rates," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

The 6-7 percent concession earlier offered by the GSP Plus had brought substantial benefits to the garment industry, Sri Lanka's second-biggest foreign exchange earner after remittances.

Sri Lanka lost the EU concession in 2010 after then-president Mahinda Rajapaksa rejected demands from the international community to address human rights abuses allegedly committed during a 2009 offensive to crush a Tamil insurgency.

The day's turnover stood at 519.9 million rupees ($3.47 million).

Foreign investors were net buyers of 2.6 million rupees worth of equities on Friday, but they have been net sellers of 1.7 billion rupees worth of shares so far this year.

Shares in Sri Lanka Telecom Plc rose 2 percent while Carson Cumberbatch Plc rose 1.8 percent. 

($1 = 149.6500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Nestlé breaks ground for Rs 5 bn modern Pannala factory

Nestlé Lanka opens broke ground for its state-of-the-art factory in Pannala, Kurunegala yesterday with a total investment of more than Rs. 5 billion.

Nestlé Lanka reached another milestone by laying the foundation stone of a new manufacturing facility at its factory in Pannala, Kurunegala, as a commitment to strengthen the local dairy and coconut industries.

Through this new investment, the company plans to expand its production capacity for its popular dairy and coconut based products, providing local consumers with more goods that cater to local tastes and nutritional needs.President, Maithripala Sirisena was the chief guest.

To recognize the efforts made by Nestlé’s dairy and coconut farmers, a farmer felicitation was held in parallel to the foundation laying ceremony in the presence of over 200 Nestlé farmers.

Nestlé Lanka has made significant investments to support and develop Sri Lanka’s rural economy, especially in the dairy and coconut sectors.

As Sri Lanka’s largest private sector collector of fresh milk, collecting one third of the total commercially available fresh milk, and one of the world’s largest exporters of coconut milk powder, Nestlé supports the livelihood of close to 27,000 local farmers and their families.

Its payment to local farmers for procuring these raw materials came to Rs. 6 billion in 2016 alone.
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