Colombo Stock Exchange Market Review – 19th Jan 2017

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Colombo Stock Exchange Trade Summary 19-Jan-2017

Colombo bourse extended its losing streak for the fourth straight day amid foreign outflows. All Share index concluded the day at 6,164.90, with a loss of 20.11 index points or 0.33% while S&P SL20 index edged lower by 4.66 index points or 0.13% to end at 3,492.61.

Price losses in high caps, John Keells Holdings (closed at LKR 140.00, -0.6%), Asiri Hospital Holdings (closed at LKR 26.00, -3.7%) and Sri Lanka Telecom (closed at LKR 35.40, -1.4%) drove the index to negative territory. However, gains in Dialog Axiata (closed at LKR 10.60, +1.0%) and Commercial Leasing & Finance (closed at LKR 3.30, +3.1%) helped to ease the pressure on the index.

Daily market turnover crossed LKR 1.5bn mark supported by hefty crossings in selected high caps. Aggregate value of crossings accounted for 72% of the turnover. Royal Ceramics contributed majority of the turnover with LKR 689mn underpinned by six crossings of 5.5mn shares at LKR 125.00. John Keells Holdings (LKR 458mn), Hemas Holdings (LKR 256mn) and Softlogic Holdings (LKR 26mn) made notable contributions backed by negotiated deals.

Off-the-floor dealings were recorded in John Keells Holdings (1.0mn shares at LKR 140.00), Hemas Holdings (2.5mn shares at LKR 102.00) and Softlogic Holdings (LKR 2.0mn shares at LKR 13.00).

Losers outweighed the gainers 89 to 44, while 70 stocks remained unchanged. Relatively high investor activity was seen in John Keells Holdings, Melstacorp and First Capital Holdings. On its XD date, stock of First Capital Holdings lost 9.3% of its value in thin trade to close at LKR 25.40.

According to the interim results of LB Finance, company net earnings increased by 9%YoY in 3QFY17. However, share price fell 0.7% to close at LKR 120.10.

Foreign investors stood on sell side with a net foreign outflow of LKR 156mn. Foreign investor participation for the day was 43%. Net foreign outflows were seen in John Keells Holdings (LKR 148mn), Seylan Bank (9mn), Chevron Lubricants (LKR 7mn) while net foreign inflow was mainly seen in People’s Leasing & Finance (LKR 6mn ).
Source: LSL

Sri Lankan shares hit more than 1-wk closing low

Reuters: Sri Lankan stocks hit a more than one-week closing low on Thursday, falling for a fourth straight session, as uncertainty over foreign investments and rising yields on short-term government securities hurt investor sentiment.

Block deals however boosted turnover to a three-week high.

The Colombo stock index ended down 0.33 percent at 6,164.90, its lowest close since Jan. 10.

The index hit a two-week high on Friday, after the European Commission proposed increased market access for Sri Lanka as a reform incentive.

"The market is desperate for positive news," said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Rising market interest rates, which move in tandem with t-bill yields, are also cause for concern, other stockbrokers said.

Yields on treasury bills rose 1-16 basis points at a weekly auction on Wednesday to a four-month high after the central bank governor signalled reduced intervention to defend the rupee currency.

Investors are also concerned over possible political uncertainty as the main coalition partners in government are contesting local polls separately, analysts said.

Delay in foreign investments after a debt and balance of payments crisis last year is also weighing on sentiment, they said.

Turnover stood at 1.55 billion rupees ($10.35 million) on Thursday, its highest since Dec. 29.

Foreign investors sold a net 156.3 million rupees worth of equities on Thursday, extending the year-to-date net foreign outflow to 1.79 billion rupees worth of shares.

Market heavyweight John Keells Holdings fell 0.64 percent, while top fixed line phone operator Sri Lanka Telecom lost 1.4 percent.

($1 = 149.7000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)