Fall of stock market, Rupee persists

sriranga · 1 LSL Market Review – 26 Aug 2013 Mon Aug 26, 2013 9:41 pm

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Colombo shares further declined today for the fifth consecutive day where All Share Index dropped by 56.18 points (- 0.94%) to 5,895.65 and S&P SL 20 index lost 15.33 points (- 0.46%) to 3,327.63. Price depreciation in primary blue chip Nestle by LKR 190.20 (closed at LKR 2,015.00) impacted negatively to the market index. Losers outweighed gainers by 150 to 60 and 65 stocks reached 52 week low during today’s session.

Daily market turnover was LKR 366mn. John Keells Holdings with LKR 95mn, Commercial Bank with LKR 69mn and Tokyo Cement non-voting with LKR 20mn were the top contributors to the market turnover. Several negotiated deals were recorded in Commercial Bank (0.5mn shares at LKR 116.10 per share), John Keells Holdings (approx. 0.1mn shares at LKR 240.00 per share). The total value of the crossings accounted for 22% of the market turnover.

Further, with the interim dividend announcement of LKR 2.00 per share First Capital Holdings became the mostly traded stock for the day followed by John Keells Holdings. First Capital Holdings closed at LKR 18.60, up by +5.1%. Kingsbury Hotel –rights commenced trading today and the rights closed at LKR 0.10.

Foreign participation for the day was 40% whereas foreign investors were net sellers with a net outflow of LKR 99mn. Foreign net outflows were seen in counters such as John Keells Holdings (LKR 101mn), Ceylinco Insurance non-voting (LKR 5.6mn) and Tokyo Cement non-voting (LKR 4.6mn) while foreign net inflows were seen in Commercial Bank (LKR 24.2mn).

Cash map closed at 32%.

Redbulls · 2 Bourse dipped sharply on selected large caps Mon Aug 26, 2013 10:24 pm

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WRITTEN BY THARANGA SENARATNE

Aug 26, 2013 (LBT) - ASPI dropped sharply again with slips in selected counters: The Colombo bourse further tumbled today due to high capped counters. ASPI closed at 5,895.65 with a 56 points dip. Significant price dips in Nestle Lanka (-7.7%) followed by Dialog Axiata (-2.4%) and Commercial Leasing and Finance (-5.1%) contributed to the overall negative performance of the index. However, S&P SL20 dipped marginally by 4 points to end at 3,339.24.

COMB and JKH supported daily turnover: Commercial Bank topped the off-board transaction list with a single 500k block which changed hands at LKR116.1. The counter denoted on-board interest too backed by a 200k share trade at LKR117.0. COMB closed flat at LKR117.0. John Keells Holdings denoted some off-board interest with a 90k transaction which was dealt at LKR240.0. JKH spearheaded the daily turnover heavily backed by notable on-board interest, largest transaction being the 33k shares which traded at LKR240.1. The counter closed at 240.1 with a dip of 0.08%.

Diverse investor interest On-Board: On-Board activities were prominent in Tokyo Non-Voting with two on-board blocks of totaling to 600k shares which traded at LKR20.1. The counter ended flat at LKR20.1. Overseas Reality too denoted some on-board interest, largely backed by a single 394k share transaction at LKR17.0. The counter settled at LKR17.0 with a dip of 3.4%.

Retailers concentrated on CFVF: Retail activity was concentrated on First Capital Holding with the recent LKR2.0 dividend announcement. The counter displayed some momentum during the day and closed at LKR18.7 with a gain of 5.7%.
http://lbt.lk/stock-market

Redbulls · 3 Fall of stock market, Rupee persists Tue Aug 27, 2013 12:23 am

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Reuters: Stocks closed at their lowest level in more than four months on Monday with trading volume slumping to near three-week lows as foreign outflows continued for the third day, while retail investors stayed on the sidelines amid a falling rupee, brokers said.

The main share index ended down 0.94%, or 56.18 points, at 5,895.65, its lowest close since 22 April.

Analysts said investors were cautious over the fall in the rupee and earnings outlook. The local currency hit a near one-year low on Monday due to renewed selling of Government bonds by foreign investors.

Shares in Nestle Lanka Plc ended 7.72% lower at Rs. 2,035 while Dialog August fell 2.35% to Rs. 8.30.

Foreign investors were net sellers for a third straight session, selling Rs. 99 million ($ 748,000) worth of shares, extending net outflows to Rs. 264 million in the last three sessions. However, they have been net buyers of Rs. 18.25 billion worth of shares so far this year.

Turnover was Rs. 365.9 million, its lowest since 8 August, and well below this year’s daily average of about Rs. 916.6 million.

The Sri Lankan Rupee on the other hand fell to a near one-year low against the dollar on Monday due to importer demand for the greenback amid renewed selling of government bonds by foreign investors.

The market expects the rupee to depreciate further with exporters holding onto dollars and foreign investors gradually exiting treasury bonds.

Dealers said banks switched to one-day currency forwards in an inactive spot market.

The spot rupee fell to 132.80 per dollar, its lowest since Sept. 14, Thomson Reuters data showed. It had closed at 132.50 on Friday.

The spot next or one-day forward closed at 132.80/90 per dollar, compared with Friday’s close of 132.75/85.

“Demand (for dollars) continued. The spot next is weaker on importer dollar demand but the demand from foreign bond holders is also there,” a dealer said.

The rupee fell around 4% between June 7 and July 18, after foreign investors started pulling out of Sri Lanka’s treasury bonds due to a rise in U.S. treasury yields. The benchmark 10-year note yield is hovering around a two-year high at 2.8275%.
http://www.ft.lk/2013/08/27/fall-of-stock-market-rupee-persists/