Mega deal in JKH between foreign funds drive turnover to Rs. 3.5 bn

Redbulls · 1 Sri Lanka stocks close flat Thu Jun 20, 2013 5:31 pm

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June 20, 2013 (LBO) - Sri Lanka's stocks closed barely changed Thursday with the market showing marginal gains, helped by foreign buying in to a index heavy stock, brokers said.

The benchmark Colombo All Share Index closed 02.21 points higher at 6,211.44, a 0.04 percent gain and the S&P SL 20 Index closed 03.54 points lower at 3,492.14 down 0.10 percent.

Turnover was 3.4 billion rupees up from 343 million a day earlier.

Foreigners being net sellers contributed 84 percent for today’s turnover. They brought 2.8 billion rupees worth shares while selling 3 billion rupees in a day that 87 stocks advanced and 99 stocks declined.

John Keells Holdings contributed most to the index gain closing at 269.50 rupees up 4.50 rupees helped by a crossing of 10 million shares at 265.00 rupees per share raising 2.7 billion rupees.

Brokers speculates that the JKH share transaction between two foreign parties occurred amid reports the company is to sign a 640 million US dollar deal to establish an integrated hotel complex in the capital of Colombo.

Colombo Cold Stores closed at 174.80 rupees up 14.80 rupees and Trans Asia Hotels gained 3.20 rupees to close at 83.20 rupees.

Negative contributors included Dialog Axiata losing 10 cents to close at 8.70 rupees, Carsons Cumberbatch closed at 440.70 rupees down by 3.30 rupees following a crossing 200,000 shares at 445.00 rupees per share and Asia Hotel & Properties lost 1.40 rupees to close at 72.00 rupees.

Pan Asia closed at 19.30 rupees down 20 cents. Union Bank of Colombo closed flat at 18.00 rupees and Sampath Bank closed at 208.10 rupees down 2.50 rupees and

Commercial Bank of Ceylon lost 40 cents to close at 115.80 rupees following a crossing of 2.7 million shares at 115 rupees per share.

Nestle Lanka gained 6.40 rupees to close at 1911.10 rupees and Chevron Lubricants Lanka gained 2.60 rupees to close at 292.00 rupees

Distilleries Company crossed 150,000 shares at 193 rupees a share to close at 192.90 rupees down 10 cents, The Lions Brewery closed at 399.00 rupees down by 1.00 rupee and Ceylon Tobacco Company closed at 1007.00 rupees up 1.80 rupees.
http://www.lankabusinessonline.com/news/sri-lanka-stocks-close-flat/1944371696

sriranga · 2 Sri Lanka rupee down on dollar buying by foreigners Thu Jun 20, 2013 6:08 pm

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COLOMBO, June 20 (Reuters) - Sri Lanka's rupee fell on Thursday as foreign investors booked forwards to hedge their exposure, currency dealers said, amid a trend of foreign outflows in other Asian peers in the wake of rise in U.S. Treasury yields.

Emerging markets, many of which have been primed by the cheap Fed cash, saw some of the biggest selling as investors rushed to the exits on Thursday, after the U.S. Federal Reserve laid out a timetable for turning off the taps on its $85 billion-a-month bond-buying programme.

'Some foreign investors sold their long-term bonds and shifted to shorter tenure securities to hedge their exposure,' a currency dealer said on condition of anonymity. 'We still see a weaker rupee, with foreign investors selling their bonds.'

The rupee closed at 128.43/47 to the dollar, 0.2 percent weaker from Wednesday's close of 128.10/20.

The rupee lost 1.6 percent last week. It fell to 129.00/129.10 per dollar in early trades on Friday, its lowest in more than six months, as foreign investors sold debt as part of a broader selloff in emerging markets.

The local currency has weakened 0.7 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.

Sri Lanka's main stock index closed flat, but the turnover hit a more than six-week high due to a block deal in market heavyweight John Keells Holdings between two foreign funds, said stockbrokers.

The bourse ended 0.04 percent, or 2.21 points, firmer at 6,211.44. It hit a near a five-week low on Tuesday on concerns of a possible pullout by foreign funds, following regional peers.

On Wednesday, sources told Reuters that top conglomerate Keells will sign a $640 million deal to establish an integrated hotel complex. Shares in Keells closed 1.7 percent up at 269.50 rupees per share. The market witnessed net foreign outflows of 183 million rupees ($1.42 million) on Thursday, but foreigners have been net buyers of 16.04 billion rupees in shares.

The day's turnover was at 3.48 billion rupees, more than thrice of this year's daily average of 1.01 billion rupees.

($1 = 128.4750 Sri Lanka rupees) (Reporting by Shihar Aneez; Editing by Prateek Chatterjee)

(shihar.aneez@thomsonreuters.com)(+94-11-232-5540)

(Reuters Messaging:shihar.aneez.thomsonreuters.com@reuters.net)(twitter.com/shihara neez)
http://www.xe.com/news/2013/06/20/3405173.htm

sriranga

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Indices virtually flat

Nearly 10.1 million shares of John Keells Holdings were crossed on the Colombo bourse yesterday at Rs.265 each in a deal worth Rs.2.67 billion boosting the day’s turnover to Rs. 3.48 billion, up from the previous day’s Rs.343.8 million, with marginal changes in the indices – the All Share up 2.21 points (0.04%) and S&P SL20 down 3.54 points (0.10%) with 109 gainers ahead of 91 losers while 112 counters closed flat.

Brokers and analysts said that yesterday’s block trades in JKH were done between two big foreign shareholders, Janus Fund which was the conglomerate’s single largest shareholder and another foreign fund which is also a significant shareholder of JKH.

Foreign sales amounted to Rs. 3 billion, leading to a net inflow of Rs. 183.02 million on the back of foreign purchases amounting to Rs. 2.82 billion.

"The ASPI ended broadly flat amid improved activity levels. Market turnover crossed the Rs. 3bn mark mainly on the back of two block trades on JKH which accounted for over 75% of turnover. The market also saw crossings on DIST, COMB, and CARS," John Keells Stockbrokers said.

Apart from the mega deal, Commercial Bank too also saw 2.7 million shares crossed at Rs.115.80 contributing Rs.312.6 million to turnover.

Other block trades included 200,000 Carsons crossed at Rs.445 in a deal worth Rs.89 million and 150,000 Distilleries crossed at Rs.197 in a transaction worth Rs.29 million.

Apart from the crossings, JKH saw nearly 0.4 million shares done on the floor at prices between Rs.264.50 and Rs.270 closing a rupee up at Rs.269.50 and contributing Rs.103.8 million to turnover.

Several blue chips including Sampath, Commercial Bank (voting), NTB, Lion, Distilleries and HNB which showed volume yesterday saw their prices dipping though not significantly.

Sampath was down Rs.1.60 to Rs.209 on over 0.2 million shares, ComBank down 40 cents to Rs.115.80 on nearly 0.4 million shares, NTB was down Rs.1.20 to Rs.63.50 on over 0.2 million shares, Lion was down a rupee to Rs.399 on 34,501 shares, Distilleries down 10 cents to Rs.192.90 on 68,017 shares and HNB down 50 cents to Rs.164.50 on 39,416 shares.

Analysts said that the big transaction on JKH came ahead of an expected announcement, possibly next week, of a big Colombo city development project that JKH has been working on over an extended period.

These plans were kept under wraps pending final regulatory approval expected to be announced in the short—term, they said.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=81753