Sri Lankan shares slip from 4-wk closing high on profit-taking

Reuters: Sri Lankan shares ended slightly weaker on Thursday, down from a four-week closing high hit in the previous session, as investors sold diversified and telecom shares after a three-day rising streak.

The Colombo stock index fell 0.03 percent to end at 6,173.72, sliding from its highest close since Jan. 18 hit on Wednesday as investors picked up the battered blue-chip shares.

"We saw a bit of profit-taking in the latter part of the day. But some crossings pushed turnover," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Shares in Carson Cumberbatch Plc fell 8.14 percent, while conglomerate John Keells Holdings Plc lost 0.54 percent, dragging down the overall index.

Turnover stood at 633.1 million rupees ($4.20 million), in line with this year's daily average of 631.5 million rupees.

Foreign investors net bought 67.5 million rupees worth of equities on Thursday. They have net sold 223.2 million rupees worth of shares so far this year.

"With interest rates on the rise, the market will remain slow in the next few days and many investors will wait to see the direction from the sovereign bond issue," Mathew said.

The Sri Lankan cabinet approved a $1.5 billion sovereign bond issue to repay loans and manage interest payments, a cabinet spokesman said on Wednesday.

Yields on treasury bills rose 5-8 basis points at a weekly auction on Wednesday and are hovering at a more than four-year high. 

($1 = 150.7500 Sri Lankan rupees) 

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

Colombo Stock Exchange Market Review – 16th Feb 2017

(Click here)

Colombo Stock Exchange Trade Summary 16-Feb-2017

Colombo equities closed on mixed note despite foreign inflows. All Share index touched 6,194 mark in morning hours but failed to retain the momentum to close at 6,173.72, down by 1.78 index points or 0.03%. However, 20-scrip S&P SL index advanced by 1.95 index points or 0.05% to end at 3,547.86.

Price decline in high caps namely, Carson Cumberbatch (LKR 153.40, -8.1%), John Keells Holdings (LKR 147.20, -0.5%) and Aitken Spence Hotels Holdings (LKR 38.80, -5.1%) impacted the index performance.

Daily market turnover was LKR 633mn. Lion Brewery was the major contributor to the turnover with LKR 164mn supported by two negotiated deals of 0.4mn shares changed hands at LKR 430.00. Access Engineering (LKR 157mn), John Keells Holdings (LKR 89mn) and Chevron Lubricants (LKR 35mn) made notable contribution.

Off-the-floor transactions were recorded in Access Engineering (5.8mn shares at LKR 26.50) and John Keells Holdings (0.5mn shares at LKR 147.50). Aggregate value of crossings accounted for 63% of the turnover.

Market breadth was equally divided where 66 stocks advanced while 66 stocks slipped. High investor activity was seen in Central Investments & Finance, subsequent to the lift of trading halt. Stock advanced to LKR 1.50 but closed at LKR 1.20, with a loss of 14.3%. Pan Asia Bank rights, Sampath Bank and First Capital Holdings were among heavily traded counters.

Foreign investors stood on buy side for the eleventh consecutive session with a net foreign inflow of LKR 68mn. Foreign participation was 46%. Net foreign inflows were seen in Chevron Lubricants (LKR 33mn), Seylan Bank non-voting (LKR 10mn), Sampath Bank (LKR 10mn) while net foreign outflow was mainly seen in Lion Brewery (LKR 1mn).

Source: LSL

Colombo Stock Exchange Market Review – 15th Feb 2017

(Click here)

Colombo Stock Exchange Trade Summary 15-Feb-2017

Colombo bourse extended winning streak for the third straight day led by price gains in high caps. All Share index crossed 6,150 mark and closed at 6,175.50, with a gain of 26.56 index points or 0.43% while 20-scrip S&P SL index advanced by 12.98 index points (0.37%) to end at 3,545.91.

Price appreciation in Ceylon Tobacco (LKR 848.60, +2.9%), Ceylinco Insurance (LKR 1,299.50, +6.0%) and Carson Cumberbatch (LKR 167.00, +4.4%) pushed the index to greener territory.

Daily market turnover reached LKR 876mn supported by last minute negotiated trade in John Keells Holdings where 3.9mn shares changed hands at LKR 148.00. Another crossing was recorded in Tokyo Cement (1.3mn shares at LKR 60.00). Aggregate value of crossings accounted for 75% of the turnover.

Accordingly, John Keells Holdings (LKR 593mn) was the top contributor to the turnover followed by Tokyo Cement (LKR 77mn), Hatton National Bank (LKR 25mn) and Access Engineering (LKR 17mn) respectively.

Pan Asia Bank rights continued to decrease as it closed at LKR 0.70, down by 22.2% during the session. Sampath Bank, Richard Pieris and John Keells Holdings witnessed heavy trading activity. Tokyo Cement (LKR 60.50, +2.5%) closed with gains subsequent to the positive quarter earnings.

Foreign investors were net buyers with a net foreign inflow of LKR 22mn. Net foreign inflows were seen in Hatton National Bank (LKR 25mn), Melstacorp (LKR 8mn), Tokyo Cement (LKR 3mn) and net foreign outflow was mainly seen in CT Holdings (LKR 7mn). Foreign participation for the day was 80%.

Meanwhile at the Treasury bill auction today, yields increased across board. Three month treasury rate increased by 6bps to 9.22% and six month treasury rate advanced to 10.12% (+5bps). One year Treasury bill yield increased by 8bps to 10.55%. CBSL offered treasury bills worth of LKR 25.5bn and auction was oversubscribed by 2.1 times with bids receiving amounting to LKR 53.1bn. It was decided to accept LKR 21.8bn worth of treasury bills.
Source: LSL