Trading Thursday - Reuters Update - Sri Lanka stx flat on credit woes, foreign outflow

Sri Lanka stocks edge down
Dec 08, 2011 (LBO) - Sri Lankan closed slightly weakener Thursday, staying just above the 6,000 point mark in thin trade, with prices of two firms which revealed fraud falling sharply, brokers said.

The main All Share Price Index fell 0.03 percent (1.60 points) to 6,027.19, while the more liquid Milanka index fell 0.02 percent (0.81 points) to close at 5,248.97.
Turnover fell to 517 million rupees, according to stock exchange provisional figures.

First Capital Holdings and Dunamis Capital, the most actively traded share, were among the top losers of the day after they revealed losses from a fraud.

First Capital Holdings dropped 1.50 rupees to end at 15.50 rupees and Dunamis Capital fell 2.70 rupees to 15 rupees.

First Capital Holdings said a fraud committed by a senior employee in a subsidiary had resulted in an estimated loss of 160 million rupees.

Dunamis Capital, a related firm, said in a stock exchange filing that preliminary inquiries show the impact on its balance sheet will be 105 million rupees.

Dunamis Capital had been actively traded Wednesday, closing at 17.70 rupees, up 1.30, with 1.8 million shares changing hands, and hitting a high of 19.20.

There was a crossing or off-market private deal of 458,040 shares of Distilleries Company at 150 rupees each, the price at which it closed, unchanged from the day before. The share accounted for the day's biggest turnover.
Index heavyweight John Keells Holdings closed 1.50 higher at 173.60 rupees.

Orient Garments, which fell 40 cents to close at 36.40 rupees, and HVA Foods, which ended at 39.10, up 10 cents, were also actively traded.
http://lbo.lk/fullstory.php?nid=1065781932

Thu Dec 8, 2011 1:34pm GMT
* Bourse sees thin trading volume, turnover
* Foreign outflow at 63 million rupees
* Rupee steady dull trade without cenbank intervention

COLOMBO, Dec 8 (Reuters) - Sri Lanka's stock market ended flat on Thursday in thin trade as investors awaited direction after the appointment of a new chief for the Securities and Exchange Commission (SEC).

The island nation's main share index ended 0.03 percent or 1.60 points down at 6,027.19, erasing early gains of 0.45 percent after Tilak Karunaratne, an industrialist and former parliamentarian, took over the chairmanship of SEC. His appointment comes a week after the former chairperson quit to "uphold her principles".

Turnover and volume slumped to a one-month low as investors awaited direction from the SEC under the new chief, brokers said, while foreign investors continued to exit their positions.

Thursday's trade had a net foreign outflow of 63 million rupees. Foreign investors have sold 18.2 billion thus far in 2011, and a record 26.4 billion in 2010.

The day's turnover was 517 million Sri Lanka rupees ($4.54 million), lowest since Nov.11 and well below last year's average of 2.4 billion and this year's 2.4 billion.

Total volume was 17.1 million shares, lowest since Nov.11, against a five-day average of 39.1 million. The 30-day and 90-day average trading volumes were 55.8 million and 98.6 million. Last year's daily average was 67.9 million.

On a net basis, foreign investors bought 78,400 shares in John Keells Holdings PLC, which ended 0.78 percent firmer at 173.60 rupees while and sold 378,000 shares in Asian Hotels and Properties PLC, which fell 0.13 percent to 74 rupees.

The bourse has fallen 11.15 percent since Oct. 1 on an assets acquisition bill, resignation of top SEC officials, and a 3 percent devaluation in the rupee.

It is Asia's 13th-best performer with a year-to-date loss of 9.17 percent after being at the top until June. It gave Asia's best returns in 2009 and 2010.

The rupee closed flat at 113.89/90 rupees a dollar for a 12th straight day. For the first time since the devaluation on Nov. 22, the central bank stayed away from the market on Thursday. It has sold $260 million to defend the currency since then.

FACTORS TO WATCH:
- Changes from the SEC on credit and trading controls
- The potential for imported inflation post-devaluation
- The reserve cost of defending the new rupee rate

DATA Colombo Stock Exchange:
Stock Market Volume (Shares)
Current Volume-----------Average Volume 30 Days
17,647,910----------------------------55,839,750

Yield and Price of Sri Lanka's sovereign bonds:
Maturing year----Tenure------Amount-----------Reuters yield
2012-------------5-yr--------$500 mln----------5.911-5.616
2014-------------5-yr--------$500 mln----------5.439-5.099
2020------------10-yr--------$1,000 mln--------6.1369-5.9899
2021------------10-yr--------$1,000 mln--------6.2376 -6.0989

($1 = 113.9150 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bryson Hull)
http://uk.reuters.com/article/2011/12/08/markets-srilanka-idUKL3E7N842E20111208