Colombo Stock Exchange Market Review – 13th Feb 2017

(Click here)

Colombo Stock Exchange Trade Summary 13-Feb-2017

Colombo bourse regained lost grounds on Monday as Fitch revised country's sovereign rating outlook from negative to stable. All Share index bagged 44.58 index points or 0.73% to end at 6,138.73 while high cap constituent S&P SL20 index gained 32.74 index points or 0.94% to close at 3,521.24.

Price appreciation in premier blue-chip, John Keells Holdings (LKR 149.90, +1.6%) along with Dialog Axiata (LKR 11.00, +3.8%), Commercial Bank (LKR 142.00, +1.4%) pushed the index to positive territory. Market breadth was positive where out of 201 stocks traded, 79 advanced, 55 slipped and 67 remained unchanged.

Daily market turnover reached LKR 785mn boosted by negotiated trades in selected blue-chips. Off-the-floor dealings were recorded in Hemas Holdings (1.5mn shares at LKR 107.00), John Keells Holdings (1.0mn shares at LKR 146.00) and Hatton National Bank (0.1mn shares at LKR 227.00). Aggregate value of crossings accounted for 41% of the turnover.

Accordingly, Hemas Holdings (LKR 304mn) and John Keells Holdings (LKR 238mn) were major contributors to turnover followed by Hatton National Bank (LKR 82mn) and Chevron Lubricants (13mn).

High investor activity was witnessed in John Keells Holdings, Dialog Axiata and HNB Assurance. Share price of both, Dialog Axiata and HNB Assurance increased amid the dividend announcements. Further, Overseas Realty advanced by +5.7% to LKR 20.30 supported by final dividend of LKR 1.25 per share.

Foreign investors were net buyers with a net foreign inflow of LKR 333mn. Foreign participation was 61%. Net foreign inflows were seen in Hemas Holdings (LKR 259mn), John Keells Holdings (LKR 70mn) and Chevron Lubricants (LKR 13mn). Foreign outflow was mainly seen in Hatton National Bank (LKR 29mn).

Source: LSL

Sri Lankan shares hit more than 1-wk closing high; blue chips gain

Reuters: Sri Lankan shares hit a more than one week closing high on Monday as investors picked up battered blue chips such as John Keells Holdings Plc and Dialog Axiata Plc, brokers said.

The Colombo stock index ended 0.73 percent firmer at 6,138.73, its highest close since Feb. 2.

The index hit its lowest closing level since March on Feb. 6.

"Bargain hunting in blue chips drove the market, but rest of the market, retailers and high net-worth investors are on the sidelines," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

"The only positive news we heard is the Fitch rating revision, but still investors are waiting to see the direction."

On Thursday, Fitch Ratings affirmed Sri Lanka's Long-Term Foreign- and Local Currency Issuer Default Ratings (IDR) at 'B+' and revised the outlook to 'stable' from 'negative'.

Shares of John Keells Holdings Plc rose 1.64 percent, while Dialog Axiata Plc jumped 3.77 percent and the biggest listed lender, Commercial Bank of Ceylon Plc climbed 1.36 percent.

Turnover stood at 785.1 million rupees ($5.21 million), more than this year's daily average of 625.8 million rupees.

Foreign investors net bought 332.6 million rupees worth of equities on Monday. They have net sold 371.2 million rupees worth of shares so far this year.

Sri Lankan stocks have been hit by political uncertainty arising from a decision of the ruling coalition parties to contest local polls separately, and on worries over a rise in market interest rates.

Last week, the country's central bank kept key rates steady for a sixth straight month, but flagged possible "corrective measures" in the months ahead in a sign further tightening might be on the cards to temper inflation pressures and safeguard a fragile rupee.

Yields on treasury bills are hovering at a more than four-year high.

Sri Lanka's stock and foreign exchange markets were closed on Friday for a Buddhist religious holiday. 

($1 = 150.7500 Sri Lankan rupees) 

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