Trading Tuesday - Sri Lanka stocks slide 1.1-pct, rupee held

COLOMBO, Feb 26 (Reuters) - Sri Lankan stocks fell to a two-month low on Tuesday despite foreign inflows as retail investors sold on worry about the economy after the government raised fuel prices.

The government raised fuel prices to record levels on Saturday to prevent the state-owned oil firm suffering further losses. Investors expect more pressure on already near-record high inflation.

The main share index ended 1.15 percent or 66.13 points weaker at 5,669.48, at its lowest since Dec. 31.

'Many investors were on the sidelines awaiting direction on interest rates,' said a stockbroker who declined to be identified.

Analysts said interest rates could reverse a falling trend as the government may seek expensive commercial foreign borrowing.

Turnover was 713.97 million rupees ($5.60 million), well below this year's daily average of 1.06 billion rupees.

Foreign investors bought a net 361 million rupees worth of shares, but they have been net sellers of 383.37 million rupees worth of rupees this year.

The rupee ended weaker at 127.47/50 to the dollar from Friday's close of 127.30/45, on importer dollar demand, dealers said. ($1 = 127.4000 Sri Lanka rupees)

(Reporting by Shihar Aneez and Ranga Sirilal)

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

(Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net)
http://www.xe.com/news/2013/02/26/3223185.htm

COLOMBO, Feb 26 (Reuters) (Reporting by Shihar Aneez and Ranga Sirilal)

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

(Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net)
http://www.xe.com/news/2013/02/26/3223185.htm

Sri Lanka bourse at 2-month low on fuel price, rates

Yeah..!!! right

Market started on a negative note as negative developments in the macro-economic front and motions against Sri Lanka at the UNHCR factored in during today’s trading. Most blue-chips lost ground as retail selling also picked up. Private deals on blue-chips helped buoy turnover levels. The market is developing into a buyers’ market whereby opportunities for bargain hunting will arise.

ASI lost 66.13 points (1.15%) to close at 5,669.48 and the S&P SL20 index lost 27.86 points (0.86%) to close at 3,195.42. Turnover was Rs. 714.0Mn.

Top contributors to turnover were John Keells Holdings with Rs. 236.6Mn, Commercial Bank with Rs. 143.9Mn and Nations Trust Bank with Rs. 56.5Mn. Most active counters for the day were Touchwood Investments, AIA Insurance and Commercial Bank.

Notable gainers for the day were AIA Insurance up by 13.9% to close at Rs. 336.00, Piramal Glass up by 1.6% to close at Rs. 6.20 and Citrus Leisure up by 1.6% to close at Rs. 20.60. Notable losers for the day were Orient Garments down by 12.8% to close at Rs. 8.90, Citrus Leisure warrant-19 down by 10.0% to close at Rs. 2.70 and Capital Guardian partners down by 7.5% to close at Rs. 38.50.

Cash map for today was 36.91%. Foreign participation was 40.57% of total market turnover with net foreign inflow of Rs. 361.0Mn.

UKboy wrote:

COLOMBO, Feb 26 (Reuters) (Reporting by Shihar Aneez and Ranga Sirilal)

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

(Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net)
http://www.xe.com/news/2013/02/26/3223185.htm

Sri Lanka bourse at 2-month low on fuel price, rates

Yeah..!!! right

If the target readership is the business community, I wonder what the rationale is in these types of statements in the daily report ? Tabloid type biz reporting ?

Ohh yeee.More reasons.Whether it's up or down there's a reason.It's better if you can predict it day before like weather report.

All the daily financial reports by Reuters, CNN, Bloomberg or even our local brokers daily reports are like same.

Even Daily Mirror and FT.lk just publishing the reuters report.
Just an example.
Our Forum:
http://forum.srilankaequity.com/t26136-sri-lanka-stocks-hit-7-week-low-after-grim-imf-report
From FT.lk
http://www.ft.lk/2013/02/22/stocks-hit-7-week-low-after-grim-imf-report/

After seeing couple of comments, I think better to stop posting Reuter's news in the news section.

Thanks for the feedback.

Feb 26, 2013 (LBO) - Sri Lanka's stocks slid 1.15 percent Tuesday amid a broad based sell-off ahead of an UN resolution over human rights later in the week and the rupee held steady with selling by a state bank, brokers and dealers said.

Colombo's benchmark All Share Index fell 66 points to 5,669.48 points and the S&P SL20 Index fell 21 points (0.65-pct) to 2,320,21 points.

Turnover was 713 million rupees.

Brokers said there was concern over a planned UN resolution on human rights on the country as well as a recent rise in fuel prices.

Analysts however say the fuel price hike is expected to improve state finances and reduce inflation and help prevent interest rates going up, which will be positive for the market.

Index heavy Ceylon Tobacco Company fell 29 rupees to 771 as some feared another tax hike on cigarettes while Distilleries Corporation also fell 2.90 to 181.00 rupees.

Sri Lanka Telecom fell 1.90 to close at 42.60 rupees.

Commercial Bank fell 10 cents to 107.50, John Keells Holdings fell 90 cents to 236 rupees and Hatton National Bank fell 20 cents to 147.50.

AIA Insurance gained 38.40 rupees to 333.40 after its parent made an offer to buy out minority shareholders at 346 rupees.

In forex markets the rupee was quoted around 127.48/50 levels with a state name on the selling side dealers said.

The rupee has come under pressure from excess liquidity and dollars sales which are not sterilized can mop up liquidity and tighten the monetary system, analysts say.

An outright auction of short-term Treasuries by the monetary authority was abandoned because there were no takers, dealers said. A term auction to withdraw liquidity was rejected.
http://lbo.lk/fullstory.php?nid=1255357556

* AIA makes mandatory offer for Aviva Insurance, plans to delist

The Colombo bourse plunged yesterday on a turnover of Rs.714 million, up from the previous trading day’s Rs.572.6 million, with the All Share Price Index down 66.13 points (1.15%) while the S&P SL20 lost 21 points with 171 losers strongly outpacing 47 gainers while 39 counters closed flat.

Foreign purchases amounted to Rs. 470.12 million, resulting in a net inflow of Rs. 360.99 million.

AIA who have taken control of Aviva NDB Insurance announced a mandatory offer of Rs.349 per share for the remaining shares of the insurance company indicating that they would pay Rs.400 per share if 90 percent of the shareholders took up the offer.

"It is AIA’s ultimate objective, subject to legal and regulatory requirements…or applicable in the future and having obtained all necessary regulatory approvals and clearances to proceed to a delisting of AIA Insurance from the Colombo Stock Exchange," the company said in a stock exchange filing yesterday (26)

Aviva NDB Insurance gained sharply on the trading floor to close Rs.41 up at Rs.336 on 42,046 shares done between Rs.299 to Rs.338 generating a turnover of Rs.13.3 million.

"The ASPI ended lower on the back of declines on several large and mid-cap counters. Activity levels remained subdued and were largely dominated by trades on JKH and COMB, which collectively accounted for over 50% of market turnover inclusive of block trades. The market also saw crossings on NTB and DIAL," John Keells Stockbrokers said.

Much of yesterday’s business came off block trades with Rs.322.5 million coming off crossings in Dialog, NTB, Commercial Bank (voting) and JKH.

Five million Dialog was crossed in two parcels of 2.5 million shares each at prices of Rs.9.10 and Rs.9.20 in deals worth Rs.45.74 million while Commercial Bank saw a million shares crossed at Rs.107.50 contributing Rs.107.5 million to turnover and JKH 0.5 million shares crossed at Rs.236.50 contributing Rs.118.3 million to turnover. Nearly 0.9 million NTB was crossed in a single parcel at Rs.59.

On the trading floor JKH closed 90 cents down at Rs.236 on 0.5 million transacted between Rs.233.10 and Rs.236.20 generating a turnover of Rs.118.3 million.

Next on the turnover league was Commercial Bank (voting) closing 60 cents down at Rs.107.50 with over 0.3 million shares traded between Rs.106 and Rs.108 contributing Rs.36.4 million to turnover.

Distilleries closed Rs.2.90 down at Rs.181 on over 0.1 million shares done between Rs.180 and Rs.183 generating a turnover of Rs.22.2 million.

NDB closed Rs.5.30 down at Rs.145 on 70,098 shares, Sampath gained Rs.1.80 to close at Rs.227 on 34,471 shares and Carsons was down Rs.18 to Rs.432 on 15,404 shares.

Seylan Bank announced a cash and scrip dividend with a first and final dividend of Re.1 per share to be paid after shareholder approval at a March 28 AGM. The stock will trade XD on April 1 with payment on April 9.

A scrip dividend of one new share for every 65.555 voting shares and one new share for every 38.888 non-voting shares will be issued subject to shareholder approval at the AGM. A total of 2.64 million new voting shares and 4.24 million non-voting shares are to be issued.

Lanka Floor Tiles announced an interim dividend of Rs.1.50 for 2012/13 XD from March 6 and with payment on March 15 while Colombo Dockyard announced a first and final dividend of Rs.8 per share for 2012 XD from March 6 and with payment on March 15.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=73540