Sri Lankan shares end lower on rising rates

Reuters: Sri Lankan stocks closed lower on Monday as investors sold financials after rising yields in short-term government securities hit sentiment, brokers said.

The Colombo stock index ended 0.26 percent weaker at 6,201.65, slipping from its highest close since Dec. 30 hit on Friday.

Shares gained on Friday after the European Commission said that it had proposed increased market access or Generalised Scheme of Preferences Plus (GSP+) for Sri Lanka as a reform incentive.

"Positive sentiment on the GSP-plus is short-lived. The rising rates are hitting the market," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Yields on treasury bill auctions rose 9-19 basis points at a weekly auction last week to a four-month high, after the central bank governor signalled reduced intervention to defend the rupee currency.

The day's turnover stood at 911.9 million rupees ($6.09 million).

Foreign investors net bought 78.7 million rupees worth of equities on Monday, but they have net sold 1.62 billion rupees worth of shares so far this year.

Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 1.41 percent, while Asiri Hospitals Plc fell 2.59 percent. 

($1 = 149.7500 Sri Lankan rupees) 

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

Colombo Stock Exchange Market Review – 16th Jan 2017

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Colombo Stock Exchange Trade Summary 16-Jan-2017

Colombo Bourse closed lower on Monday after consecutive days of gains despite high volumes. ASI lost 16.07 index points or 0.3% to close at 6,201.65 while S&P SL 20 index declined 15.61 index points or 0.4% to 3,508.79.

Among blue-chips, Melstacorp (closed at 67.00, -2.6%), Commercial Bank (closed at LKR 140.00, -1.4%), John Keells Holdings (closed at LKR 141.00, -0.6%) led losers while Carson Cumberbatch (closed at LKR 180.00, +3.5%) and Hemas Holdings (closed at LKR 101.00, +1.0%) managed to gain ground. Overall sentiments remained bearish with losers outweighing gainers 77 to 42 while 68 scripts remained unchanged.

Market turnover was LKR 912mn. Nearly 56% of the turnover came from Summit Finance as a result of the change in major shareholding as announced earlier. Accordingly, Sarvodya Development Finance Ltd sold aprox 17mn shares of Summit Finance in a single crossing to Prime Lands (Pvt) Ltd at LKR 30.00 per share. Apart from Summit Finance (LKR 511mn), Royal Ceramics (LKR 88mn), Commercial Bank-nonvoting (LKR 57mn) and Seylan Bank (LKR 46mn) made notable contributions to the turnover.

Negotiated deals accounted for 80% of the market activity and the crossings were seen Overseas Realty (1.9mn shares at LKR 20.00), Commercial Bank – nonvoting (0.5mn shares at LKR 113.50), Hatton National Bank – nonvoting (0.2mn shares at LKR 190.00) and Royal Ceramics (0.7mn shares at LKR 125.00).

Overseas Realty was heavily traded on its renunciation date along with National Development Bank (LKR 151.90, -0.1%) and Melstacorp.

Foreign investors were net buyers in today’s session with a net inflow of LKR 79mn. Top net inflows were seen in Royal Ceramics (LKR 88mn), Seylan Bank non-voting (LKR 7mn), Hemas Holdings (LKR 5mn) while top net outflow was recorded in John Keells Holdings (LKR 16mn). Foreign investor activity accounted for 23% of the turnover.

Source: LSL