Sri Lanka stocks down 0.33-pct, rupee weaker

sriranga

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COLOMBO, Oct 28 (Reuters) - Sri Lankan stocks slipped from a one-week high on Monday in dull trade due to foreign outflows and a fall in shares of conglomerate John Keells Holdings Plc .

The main share index fell 0.33 percent, or 19.78 points, to 5,928.97, from its one-week closing high on Friday.

Shares in John Keells Holdings fell 1.89 percent to 218.10 rupees while Carson Cumberbatch Plc ended 5.04 percent weaker at 375.00 rupees.

John Keells, which has been raising $299 million by selling rights and warrants to fund a $850 million resort project, on Friday said its rights issue was substantially oversubscribed.

Foreign investors were net sellers of 91.7 million rupees worth of shares on Monday, snapping five straight sessions of foreign inflows. However, they have been net buyers worth 22.73 billion rupees so far this year.

The day's turnover was 372.5 million rupees ($2.85 million), well below this year's daily average of 875.8 million rupees.

($1 = 130.6500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anupama Dwivedi)

(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/2013/10/28/3626149.htm

Redbulls · 2 Indices trended down followed with a consolidation Mon Oct 28, 2013 7:53 pm

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WRITTEN BY THARANGA SENARATNE

Oct 28, 2013 (LBT) - Indices on a downtrend with consolidation phase in the later session: ASPI denoted a downward trend in the early part of trading and changed modes into a consolidation phase and settled the day with a dip of 20 points at 5,928.97. Price dips in John Keells Holdings (-1.9%) and Carsons Cumberbatch (-5.0%) weighted down the overall market performance. Significant on-board interest was seen in Tokyo Cement and Lanka IOC adding 30% to the daily turnover. S&PSL20 journeyed on a similar path with a dip of 19 points and settled at 3,261.76.

COMB recorded the only crossing for the day: Commercial Bank was the only crossing for the day recording a single 176k block which changed hands at LKR117.0. On-board interest of the counter was dormant and the counter ended at LKR116.6 with a dip of 0.3%.

Investor interest in TKYO and LIOC: Tokyo Cement Company and Lanka IOC spearheaded the day’s turnover. TKYO topped the on board turnover supported by three blocks totaling to 2mn shares which traded at LKR25.0 and LKR25.5. The counter closed at LKR25.7 with an intra-day gain of 2.8%. LIOC also emerged to the top turnover slot led by two blocks accumulating to 656k shares and ended with a gain of 2.71%. Concentrated Retail Interest: Retail interest was minimum and concentrated on Touchwood Investments Central Investments and Finance and Kelani Tyres.
www.lbt.lk

Redbulls · 3 Sri Lanka stocks down 0.33-pct, rupee weaker Mon Oct 28, 2013 11:16 pm

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Oct 28, 2013 (LBO) - Sri Lanka stocks closed down 0.33 percent amidst heavy foreign selling and the rupee weakened against the US dollar on importer demand, brokers and dealers said.

The benchmark Colombo All Share Price Index closed 19.78 points lower at 5,928.97, down 0.33 percent, after peaking at an intraday high of 5,953.39.

The S&P SL20 closed 18.72 points lower at 3,261.76, down 0.57 percent, peaking at an intraday high of 3,287.69.

Turnover amounted to 372.54 million rupees, down from 1,480.60 million rupees the previous day, with shares of 103 firms making losses against 92 gainers.

Foreigners were net sellers on Monday, with stocks worth 114.25 million rupees sold, up from 36.43 million rupees the previous day, and foreigners bought shares worth 22.58 million rupees, down from 47.70 million rupees the previous day.

JKH closed 4.20 rupees lower at 218.00 rupees and Carson Cumberbatch closed 19.90 rupees lower at 375.00 rupees.

Ceylinco Insurance closed 73.80 rupees lower at 1,276.10 rupees and Dialog closed 10 cents lower at 8.80 rupees.

Ceylon Investment closed 6.60 rupees lower at 80.20 rupees.

Sri Lanka Telecom closed 1.00 rupee higher at 39.80 rupees and Commercial Leasing and Finance closed 20 cents higher at 4.20 rupees.

PCH Holdings closed 20 cents lower at 1.50 rupees with more than 9.42 million shares changing hands and speculative trading continued in troubled Touchwood, closing 30 cents lower at 3.80 rupees with more than 2.39 million shares traded.

Troubled CIFL, closing 10 cents higher at 1.30 rupees, saw more than 4.95 million shares change hands.

Commercial Bank closed 40 cents lower at 116.50 rupees and featured in a single crossing and Sampath Bank closed 80 cents higher at 174.50 rupees.

The Sri Lankan rupee closed weaker against the US dollar in the spot market at 130.95/131.00 from an opening position of 130.65/75, dealers said, with the Central Bank intervening to keep the rupee steady at 131.00 against the US dollar.

Excess liquidity in money markets are high after the the monetary authority bought dollars capital inflow, preventing the rupee from appreciating.

Excess liquidity in money markets come from unsterilized dollar purchases.

Analysts say the Central Bank should actively intervene until excess liquidity runs out (unsterilized forex sales) to keep the rupee stable.

Analysts have said the Central Bank's practice of buying capital inflows to generate liquidity and not following up with sales when the liquidity generates import demand is a key reason for the rupee's weakness despite having policy interest rates much higher than the US currency.
http://www.lankabusinessonline.com/news/sri-lanka-stocks-down-0.33-pct,-rupee-weaker/2145943401

worthiness · 4 Re: Sri Lanka stocks down 0.33-pct, rupee weaker Tue Oct 29, 2013 10:48 am

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"Indices on a downtrend with consolidation phase in the later session:"
"Consolidation Phase" is very common phrase seen on stock market analysis particularly when there is a knee jerk. Is consolidation phase determinable on demand & supply factors or any other indicators. Looking into data, the volume sold by foreign investors made a considerable impact on Monday's trade floor. Is there any other interesting factor? Please comment.