Sri Lanka's bourse at 1-1/2 year high on foreign, retail buying

COLOMBO, May 16 (Reuters) - Sri Lankan shares rose more than 1 percent on Thursday to hit a 1-1/2 year high, with foreigners dominating trading, while retail investors also bought after a fall in interest rates.

The main stock index rose 1.06 percent, or 65.88 points, to close at 6,287.00, its highest since Nov. 11, 2011.

Foreign investors bought 1.28 billion rupees ($10.16 million) of stocks. On a net basis, they bought 85.1 million rupees of shares, extending net foreign inflows this year to 10.85 billion rupees.

'Foreigners keep picking up blue chips on valuations, while low interest rates helps local retail activity,' a stockbroker said on condition of anonymity.

Yields in treasury bills fell in the range of 29 basis points to 45 bps on Wednesday after the central bank cut key policy rates by 50 bps last Friday, following some of its regional peers, to boost economic growth amid subdued demand.

Shares in John Keells Holdings rose 1.39 percent to 278.00 rupees, their all-time closing high.

Market turnover was 1.88 billion rupees on Thursday, well above this year's daily average of 1.04 billion rupees.

The rupee ended firmer at 125.80/85 from Wednesday's close of 125.90/126.10, helped by bank dollar sales on tighter rupee liquidity and equity inflows, currency dealers said. ($1 = 126.0250 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

(ranga.sirilal@thomsonreuters.com)(+94-11-232-5540)

(Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net)(twitter.com/rangab a)
http://www.xe.com/news/2013/05/16/3355797.htm

May 16, 2013 (LBO) - Sri Lanka’s stocks closed up 1.06 percent on Thursday, with banks and diversified companies attracting investor interest amid foreign buying, brokers said.

The benchmark Colombo All Share Index closed 65.88 points higher at 6,287.0 up 1.06 percent and the S&P SL 20 Index closed 33.03 points higher at 3,531.37 up 0.94 percent.

Turnover was 1.8 billion rupees up from 1.6 billion rupees a day earlier.

Foreigners brought 1.2 billion rupees worth shares while selling 1.1 billion rupees of shares as 146 stocks advanced and 65 lost retreated.

So far this year the market is up 11.4 percent and 11.4 percent and net foreign buying is 10.7 billion rupees.

John Keells Holdings which contributed most to the index gain ended at 278.00 rupees up 3.80. Lanka Orix Leasing Company closed at 62.20 rupees up 2.80 rupees.

Aitken Spence which had a negative impact on the market topped the turnover list contributing 53.3 percent to the market turnover in series of off-market deals. The stock closed at133.00 rupees down 1.90.

There was active trading in banks. Hatton National Bank closed at 17.00 rupees up 3.00. DFCC Bank closed at 148.90 up 1.80 rupees while Commercial Bank of Ceylon closed at 116.60 up 1.60.

National Development Bank closed at 177.10 up 2.20 rupees.

Distilleries Company of Sri Lanka gained 40 cents to close at 184.00 rupees. Ceylon Tobacco Company closed at 845.00 up 15.00 rupees.
http://www.lankabusinessonline.com/news/sri-lanka-stocks-close-up/567142199

WRITTEN BY THARANGA SENARATNE

May 16, 2013 Index jumps 66 points: The Colombo stocks saw a continuous uptrend today driven by the large cap counters regaining institutional, high net worth and foreign interest. The surge in the index was heavily weighted upon John Keells Holdings, Ceylon Tobacco Company, Lanka Orix Leasing, Commercial Bank and Hatton National Bank. 146 counters contributed positively for the index as against 65 that contributed negatively. The gain S&P SL20 index was just under 1.0% while turnover for the day rushed to LKR1.8bn

Aitken Spence led the crossings board: Aitken Spence, conglomerate with heavy exposure to the leisure sector recorded 2 large crossings accounting for 7.1mn shares dealt at LKR132.6. The transactions contributed 50% to the day’s turnover. During the same time period the counter recorded two on-board blocks of 208k and 102k shares at a similar price. The counter closed the day on a negative note at LKR133.0 (-1.4%). The day saw 10 crossings in total with 2 crossings in Commercial Bank, 3 in Piramal Glass and 1 in Dialog.

JKH, JINS and OSEA reach 52-week highs out of the top performers: John Keells Holdings renewed its 52-week high to LKR278.5 as the counter today closed at an all-time high closing price of LKR278.0 on adjusted price basis. The counter which trades at expensive valuations is rich in foreign and local interest. Both Janashakthi Insurance and Overseas Reality reached 52-week high prices of LKR14.2 and LKR17.3 respectively. Retail interest moderate and on selected counters: Retailers were slow today to enter the market as most remained on the sidelines. However, retail interest was noted in Janashakthi Insurance, Sanasa Development Bank and Regnis.
http://lbt.lk/stock-market

thank you sri

I wonder why foreigners buy overpriced counters like JKH.. It is trading at 23 PER and 2.88 PBV now.. Why not they buy NTB which is the banking arm of JKH currently trading at PER of 8 and 1.58 PBV..

econ wrote:I wonder why foreigners buy overpriced counters like JKH.. It is trading at 23 PER and 2.88 PBV now.. Why not they buy NTB which is the banking arm of JKH currently trading at PER of 8 and 1.58 PBV..

Hmm..... Yeah! it is good argument to think....!!!
Does anyone has any GOOD POINT to break this argument...!!!

Experts....... pls...!!!

All Share gains 66 points, S&P 33

The Colombo bourse performed strongly yesterday on a turnover of Rs.1.88 billion, up from the previous day’s Rs.1.69 billion, with both indices gaining tidily - the All Share by 65.88 points (1.06%) and S&P SL20 by 33.03 points (0.94%) with 171 gainers leaving 57 losers trailing while 83 counters closed flat.

Turnover was boosted by block trades of Piramal Glass (9.78 million shares), Commercial Bank (voting) (850,000 shares), Aitken Spence (7.15 million shares) and Dialog (5 million shares) contributing over 1.16 billion to turnover.

Crossings in Aitken Spence at Rs.132.60 per share contributed Rs.948.1 million to the business volume while block trades in Commercial Bank contributed Rs.98.2 million on 850,000 shares at Rs.115 each, Piramal Glass 67.5 million on 9.6 million shares at Rs.6.90 and Dialog Rs.47.5 million on 5 million shares at Rs.9.50.

On the trading floor JKH, which many brokers and analysts consider the barometer of the market, was the biggest turnover generator closing Rs.3.80 up at Rs.278 on nearly quarter million shares done between Rs.275 and Rs.278.50 which is a 52-week high for the stock.

"The way JKH performs is an indication on the way the market is going," a broker said. "There has been foreign interest in the stock for some time and what was recently bought is not yet available for trading."

Apart from the block trades, Aitken Spence closed Rs.1.10 up at Rs.136 on the floor on over 0.4 million shares done between Rs.132.60 and Rs.136 contributing Rs.355.3 million to turnover.

Banking stocks also did well showing both price gains and quantity with Sampath Bank closing Rs.2.50 up at Rs.226 on over 0.1 million shares, Sanasa up Rs.2.80 to close at Rs.86.10 on nearly 0.3 million shares, NDB up Rs.3.10 to Rs.178 on 0.1 million shares and Seylan (non-voting) up 70 cents to Rs.39.50 on over 0.4 million shares.

Janashakthi showed volume gaining Rs.1.60 to close at Rs.14.10 on over 3.2 million shares.

Retailers were active in Colombo Land, Overseas Realty, Seylan, Vallibel One, Access, Kelani Tyres and Glass while NTB attracted a mix of retail and high net worth interest.

Printcare announced a final dividend of 50 cents per share for 2012/13 XD from May 28 and payment on June 6. Malwatte announced a dividend (both voting and non-voting) of 0.075 cents first and final dividend for 2012 after shareholder approval at an AGM on June 18. The share will trade XD from June 19 with payment on June 27.

Dipped Products also announced a final dividend of Rs.3 per share following shareholder approval at a June 27 AGM with the share trading XD from June 28 and payment on July 8 while Hunas Falls announced a first and final dividend of Re.1 per share for 2012/13 following shareholder approval at a June 24 AGM with the share trading XD from June 25 and payment on July 2.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=79157

* Market capitalisation now at Rs. 238.35 b or 9.76% of total
* Share price hit a new peak of Rs. 278, up 26% from end 2012 level
* Foreign shareholding at a high 57%

Consistent improvement in the share price of John Keells Holdings (JKH) has propelled premier blue chip to almost 10% of Colombo’s market capitalisation.

JKH’s share price yesterday hit a new 52-week high of Rs. 278.50 before closing at Rs. 278. The latter put its market capitalisation at Rs. 238.35 billion or 9.76% of the total market capitalisation of the CSE.

Analysts said the current level is JKH's highest market cap share. Last week JKH share rose by Rs. 15.50 on its way to establish a new 52-week high of Rs. 271.

In comparison to end 2012, the current market capitalisation reflects a hefty increase of 27% or Rs. 51 billion. JKH share price ended calendar year 2012 at Rs. 220 whilst number of shares in issue was 851.5 million. The current number of shares in issue is 857.4 million.

Reaffirming its status as the darling of foreign investors, the non-national shareholding as of yesterday had risen to over 57% from 53.8% by end December 2012.

JKH has also been a key magnet for rising net foreign inflow, which as of yesterday was Rs. 10.7 billion. In the first two weeks of May, net buying into JKH was Rs. 1 billion – a trend that has continued this week as well.

JKH’s top slot in the Bourse is far ahead of the second ranked CTC, whose market capitalisation was Rs. 158.2 billion or 6.48%.

The closest conglomerate was Carson but with a 3.58% share or Rs. 87.5 billion.
http://www.ft.lk/2013/05/17/jkh-nears-10-of-cse-market-capitalisation-mark/

Taller the tree, louder the fall

It is a big risk for the overall market.