Rising T-bill rates push Sri Lankan bourse to 12-week low

Redbulls · 1 Stocks edge down Wed Nov 28, 2012 5:39 pm

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By The Nation
Stocks slumped on Colombo Bourse on Wednesday, again on low volumes with only 16mn shares traded. Market turnover picked up to LKR 739.5mn from last Monday mainly due to the crossings recorded in index heavy John Keells Holdings and Aitken Spence Holdings which accounted for 73% of the market turnover.

Benchmark All Shares Index slipped by 50.21 points (-0.93%) to close at 5,334.68 while sensitive MPI lost 77.36 index points (-1.57%) to close at 4,858.15. S&P SL 20 Index lost 25.24 points (-0.85%) to close at 2,934.77.

John Keells Holdings (LKR 393.3mn) and Aitken Spence Holdings (LKR 157.4mn) were the top contributors to the turnover followed by Peoples Finance (LKR 23.9mn), which continued to attract high investor interest. Further, Commercial Bank, Swarnamahal Financial Services and Browns Investments were among the actively traded stocks.

Seylan Merchant Bank non-voting (+33%), Property Developers (+21%) and Maskeiya Plantations (+14%) were the top gainers while illiquid Mirama Beach (-17%), Ramboda Falls (-16%) and Entrust Securities (-15%) were the top losers for the day.

Foreign participation was 51% and foreign investors were net buyers with a net inflow of LKR 395.6mn. Total net foreign inflow for this year amounts to LKR 35bn in contrast to LKR 19bn outflow recorded in 2011. Interestingly, foreigners have been net buyers for 165 market days out of the total of 220 so far this year (i.e.75%).

Market RSI on All Share Index dropped to 27 from the previous day figure of 31. Cash In amount from the total turnover (excluding crossings) was 21%.

The Central Bank of Sri Lanka re-issue LKR 18.0bn Treasury Bills today auction which was oversubscribed and only accepted 58% amounts of the bids received. Weighted average yields of three maturities gained compared to the last auction.
http://www.nation.lk/edition/biz-news/item/12937-stocks-edge-down.html

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COLOMBO | Wed Nov 28, 2012 10:47am GMT
Nov 28 (Reuters) - Sri Lankan stocks slipped to a 12-week low on Wednesday under continued pressure from high interest rates, with the yield on one-year government T-bills rising for the seventh week in a row.

The Colombo Stock Exchange's main index ended 0.93 percent or 50.21 points, weaker at 5,334.68, its lowest since Sept.4.

The yield for 364-day T-bills gained for a seventh consecutive week at an auction on Wednesday, central bank data showed.

"The year-end syndrome has now struck the market early with high interest rates keeping the investors away," said one broker.

Analysts said investors have been shifting to fixed deposits from equities since the central bank kept key policy rates at three-year highs on Nov. 9.

The day's turnover was 739.5 million rupees ($5.68 million)less than the year's daily average of 906 million rupees. Foreign investors bought a net 395.6 million rupees worth of shares, extending the net foreign inflow this year to 34.94 billion rupees.

The rupee was trading at 130.13/17 to the dollar at 1041 GMT compared with Monday's close of 130.10/20 in dull trade, dealers said. The markets were closed for a public holiday on Tuesday.
($1 = 130.1500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez, Editing by Jonathan Thatcher)
http://uk.reuters.com/article/2012/11/28/markets-srilanka-idUKL4N0982FF20121128

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All indices down sharply, selling pressure on speculative stock

The downtrend on the Colombo bourse continued unabated yesterday with all indices down sharply although block trades in JKH and Aitken Spence helped drive turnover to Rs. 739.5 million, up from Monday’s Rs. 116 million, which was the lowest in four months.

The All Share Price Index lost 50.21 points (0.93%), the Milanka 77.36 points (1.57%) and S&P SL20 was down 23.26 points (0.79%) with 157 losers leaving 45 gainers trailing far behind while 109 counters closed flat.

``The crossings in JKH and Spence accounted for over Rs. 538 million of the day’s business with the rest of the turnover at just Rs. 200 million,’’ a broker said.

"The indices continued to trend lower amid further selling pressure which was centered mainly on speculative second tier counters. Activity levels were boosted by crossings on JKH and SPEN, which collectively accounted for over 70% of market turnover," John Keells Stock Brokers said in a market report.

There was a foreign inflow of Rs. 395.6 mn. with foreign purchases of Rs.574.20 mn. and sales of Rs.178.63 mn.

Apart from the block trades, there was some activity in banking counters including Commercial Bank (voting), NTB and NDB although all of them closed down from the previous close.

Among the block trades, JKH generated the day’s top turnover with 1.8 million shares done in two large parcels at a price of Rs. 211.80 in deals worth Rs. 381.2 million. The Aitken Spence crossings of 1.3 million shares were done at a price of Rs. 121 per share contributing Rs. 157.3 mn. turnover.

Apart from the block trades, 57,334 JKH traded on the floor closing Rs. 2.80 down at Rs. 209 generating a turnover of Rs. 12 million.

Among the most traded banking stocks, Commercial Bank (Voting) closed 1.50 down at Rs. 100 with 0.2 million shares traded, NTB closed a rupee down at Rs. 53.50 on over 0.3 million shares while NDB, with slightly over 0.1 million shares traded closed Rs. 1.20 down at Rs. 133.80.

Volume-wise, Browns Investments with two million shared done closed flat at Rs. 3.60 and Piramal Glass with 1.2 million shares traded closed flat at Rs. 6.

There were unconfirmed rumors that People’s Finance PLC and its parent, People’s Leasing, are planning a merger with the parent acquiring available quantities of the finance company.

People’s Finance generated the day’s top turnover on the trading floor yesterday with nearly 0.7 million shares done, closing 70 cts. up at Rs. 34.50 generating a turnover of Rs. 23.9 mn.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=67091