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)

Sri Lankan shares little changed; rising rates weigh

Reuters: Sri Lankan stocks closed slightly weaker on Wednesday, falling for a third straight session, as investor sentiment took a hit on uncertainty over foreign investments and rising yields on short-term government securities.

Yields on treasury bill auctions 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.

The Colombo stock index ended down 0.02 percent at 6,185.01, stepping away from its highest close since Dec. 30, hit on Friday, when it gained after the European Commission proposed increased market access for Sri Lanka as a reform incentive.

"There is no positive news and the market is going through a stalemate situation," said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

"The interest rates are rising and uncertainty is hurting the market."

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

They are also concerned over delays in foreign investments as the economy is still in the recovery process after facing debt and balance of payments crisis last year.

Turnover stood at 171.4 million Sri Lankan rupees ($1.14 million) on Wednesday, lowest since Dec 27.

Foreign investors sold a net 70.6 million rupees worth of equities on Wednesday extending the year-to-date net foreign outflow to 1.63 billion rupees worth of shares.

Shares in Lanka Hospitals Corporation Plc fell 3.66 percent, while Aitken Spence Hotel Holdings Plc dropped 3.04 percent and Nations Trust Bank Plc slid 2.28 percent.

($1 = 150.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry

Colombo Stock Exchange Market Review – 18th Jan 2017

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Colombo Stock Exchange Trade Summary 18-Jan-2017

Colombo bourse closed on a mixed note on Wednesday in another lackluster trading session. ASI closed at 6,185.01 slightly down by 1.51 points (-0.02%) while S&P SL 20 index closed 5.93 points (+0.3%) higher at 3,497.27.

Gains in Asiri Hospital Holdings (closed at LKR 27.00, +3.9%), Ceylon Cold Stores (closed at LKR 750.00, +1.0%) and Cargills (Ceylon) (closed at LKR 190.00, +1.1%) supported S&P SL 20 index to close higher while the drop in prices in Dialog Axiata (closed at LKR 10.50, -0.9%) and Lanka Hospital (closed at LKR 65.80, +3.7%) dragged down the broader market. Out of the 183 scripts traded today, there were 69 gainers, 46 losers while 68 remained unchanged.

Turnover hit a 3-week low of LKR 171mn. The largest contribution to the turnover came from First Capital Holdings where the counter contributed LKR 65mn (38% of the total turnover) supported by a single crossing of 2.2mn shares at LKR 28.00. Other notable contributions were made by Seylan Bank (LKR 15mn), Chevron Lubricants (LKR 13mn) and Melstacorp (LKR 11mn).

Market activity was mostly concentrated on First Capital Holdings which closed unchanged at LKR 28.00 prior to its XD date. Further retail investor activity was seen Melstacorp (LKR 65.50, +0.5%), Access Engineering (LKR 25.90, +0.8%) and Hayleys Fabric (LKR 16.50, -0.6%).

Foreign investors were net sellers with a net outflow of LKR 71mn. Top net outflows were seen in First Capital Holdings (LKR 60mn), Chevron Lubricants (LKR 9mn), Commercial Bank (LKR 4mn) while top net inflow was mainly seen in Cargills (LKR 3mn). Foreign investor activity accounted for 29% of the day’s turnover.

Meanwhile, at Treasury bill auction today, rates advanced across the board. Three month yield advanced to 8.98% (+1bps) and six month yield increased by 16bps to 10.05% while one year Treasury bill rate advanced by 6bps to 10.37%. CBSL offered LKR 28bn worth Treasury bills and the auction was oversubscribed by 3.1 times with bids received amounting to LKR 86.7bn. It was decided to accept LKR 27.8bn worth of treasury bills.
Source: LSL

Colombo Stock Exchange Market Review – 17th Jan 2017

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Colombo Stock Exchange Trade Summary 17-Jan-2017

Colombo equities extended losses on Tuesday with both indices closing in negative territory. All Share Index closed at 6,186.52 with a drop of 15.13 points (-0.2%) while S&P SL 20 index closed 17.45 points (-0.5%) lower at 3,491.34.

Index performance was affected by the drop in prices in blue-chips such as Melstacorp (LKR 65.20, -2.7%), Commercial Leasing (LKR 3.20, -5.9%) and Carsons Cumberbatch (LKR 175.00, -2.8%) amid thin volumes. Market breadth was negative with losers outweighing gainers 77 to 53.

Market turnover reached LKR 511mn supported by activities in John Keells Holdings and Seylan Bank which contributed 77% of the turnover. John Keells Holdings made the biggest contribution with LKR 299mn while Seylan Bank recorded a turnover of LKR 95mn backed by a single crossing of 1mn shares at LKR 94.00. Accordingly, negotiated deals accounted for 18% of the turnover. Further, a notable contribution came from Chevron Lubricants (LKR 29mn) while none of the other counters managed to surpass LKR 10mn in turnover.

First Capital Holdings (LKR 28.00, +1.5%), John Keells Holdings (LKR 141.00, 0%) and Lanka IOC (LKR 32.00, +1.3%) were among the mostly traded stocks in today’s session.

Foreign investors were net buyers of LKR 60mn worth of shares. Foreign participation was 43%. Top net inflows were seen John Keells Holdings (LKR 78mn), Dialog Axiata (LKR 5mn) and People’s Leasing (LKR 10mn) while top net outflow was seen in Chevron Lubricants (LKR 27mn).
Source: LSL

Sri Lankan shares end lower; heavyweights down

Reuters: Sri Lankan stocks closed lower on Tuesday for a second straight session as investor sentiment took a hit on political uncertainty and as yields on short-term bonds rose.

The Colombo stock index ended 0.24 percent weaker at 6,186.52, stepping away from its highest close since Dec. 30 hit on Friday, when it gained after the European Commission proposed increased market access for Sri Lanka as a reform incentive.

"Rising interest rates and political uncertainty are really hurting the market," said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

"Market is stagnant with no major investment coming into the country."

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

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.

Turnover stood at 510.7 million rupees ($3.41 million) on Tuesday, with foreign investors buying a net 60.4 million rupees worth of equities. They have net sold 1.56 billion rupees worth of shares so far this year.

Shares in Commercial Leasing and Finance Plc fell 5.88 percent, while Carson Cumberbatch Plc lost 2.78 percent and Sri Lanka Telecom Plc slipped 1.37 percent.

Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 0.29 percent. 

($1 = 149.6500 Sri Lankan rupees) 

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

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)