Net foreign inflow to CSE tops Rs. 10 b mark

COLOMBO, May 15 (Reuters) - Sri Lankan shares recovered on Wednesday after two straight sessions of falls, helped by strong foreign buying in large caps and market heavyweight John Keells Holdings leading, while the rupee currency ended firmer on exporter dollar sales.

The main stock index edged up 0.23 percent, or 14.53 points, to close at 6,221.12.

Foreign investors bought net 859.9 million rupees of shares, the highest since March 7, extending net foreign inflows this year to 10.76 billion rupees.

'Interest in blue chips pushed the market up, while large caps dominated the turnover,' a stockbroker said on condition of anonymity.

Shares in John Keells Holdings rose 0.44 percent to 274.20 rupees per share, their all-time high.

The central bank on Friday cut key policy rates by 50 basis point, following some of its regional peers, to boost economic growth amid subdued demand. The cuts were expected ever since Treasury Secretary P.B. Jayasundera said on April 9 that interest rates could ease in May or June.

Market turnover was 1.7 billion rupees ($13.47 million) on Wednesday, more than this year's daily average of 1.03 billion rupees.

The rupee ended firmer at 125.90/126.10 from Tuesday's close of 126.50/55 on exporter dollar sales, currency dealers said. ($1 = 126.2500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

(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/2013/05/15/3353253.htm?c=1&t=

May 15, 2013 (LBO) - Sri Lanka’s stock closed up 0.23 percent on Wednesday, ending a two days of losses, with sentiment helped by falling Treasuries yields amid strong foreign buying into motor stocks, brokers said.

The benchmark Colombo All Share Index closed 14.53 points higher at 6,221.12 up 0.23 percent and the S&P SL 20 Index closed 02.16 points lower at 3,498.34 down 0.20 percent.

Turnover was 1.6 billion rupees.

Turnover was 1.6 billion rupees up from 636 million rupees a day earlier. Foreigners brought 860 million rupees worth shares while selling 229 million rupees of shares.

Yields fell up to 45 basis points at Wednesday's Treasuries auction, which brokers said helped boost sentiment in late trading.

Diesel and Motor Engineering, agents for Benz and Tata closed up 9.50 to close at 614.90 and United Motors, which has the agency for Mitsubishi closed up 5.50 rupees at 113.10 rupees, helped by foreign buying, brokers said.

The benchmark index gained helped most by Nestle Lanka which closed at 1887.50 rupees up 33.30 rupees. Carsons Cumberbatch gained 6.00 rupees to close at 446.00 rupees and John Keells Holding closed at 274.20 rupees up 1.20 rupees.

Hatton National Bank closed at 168.00 rupees down 2.90 rupees, DFCC Bank closed flat at 147.10 rupees, Commercial Bank of Ceylon closed 115.00 rupees down 1.60 rupees and National Development Bank closed at 174.90 rupees down 4.10 rupees.

Pan Asia closed at 21.10 rupees down 70 cents. Union Bank of Colombo closed at 19.90 rupees down 40 cents and Sampath Bank loss 3.50 rupees to close at 223.50 rupees.

LB Finance closed at 130.50 rupees down 4.00 rupees, Peoples Leasing and Finance lost 20 cents to close at 14.80 rupees and Commercial Leasing and Finance closed at 4.70 rupees up 10 cents.

Distilleries Company of Sri Lanka gained 1.60 rupees to close 183.60 rupees And Ceylon Tobacco Company gained 1.90 rupees to close at 830.00 rupees.

Aitken Spence closed at 134.90 down 10 cents. Browns Investments closed flat at 3.50 rupees.

Softlogic Holding gained 10cents to close at 12.10 rupees Hayleys closed at 300.00 rupees down 30 cents and Vallibel One closed flat at 20.00 rupees.

Sri Lanka Telecom gained 10 cents to close at 42.70 after reporting strong profits, and Dialog Axiata closed flat at 9.50 rupees.
http://www.lankabusinessonline.com/news/sri-lanka-stocks-close-up-0.2-pct/746171438

WRITTEN BY THARANGA SENARATNE

May 15, 2013 (LBT) - Bourse reverts back to the green: The benchmark index moved on a volatile note with renewed buying interest leading to a gain of 14 points at 6,221.12 points. BFI sector and Diversified sectors continued dominancy, adding 62% to the turnover. Gains denoted in heavy weights; Nestle Lanka (+1.8%), Carsons Cumberbatch (+1.4%), Hatton National Bank (+1.8%) and John Keells Holdings (+0.4%) supported the uptrend of the index while marginal dips in banking players in the S&P SL20 calibre led the index to close marginally down at 3,498.34 points.

15 crossings added 54% to the turnover spearheaded by John Keells Holdings: John Keells Holdings continued to lead the turnover supporAted by 7 off-board deals which carried 1.25 mn shares at LKR274.0 and LKR275.0. The counter touched a new 52-week high of LKR275.0 with majority of on-board interest weighing towards the selling side. BFI sector interest continued highlighting Sampath Bank (-1.5%), National Development Bank (-2.3%) and Commercial Bank (-1.4%) creating further opportunity to accumulate. The former counters encountered one and four crossings each at LKR225.0 and LKR175.0. Motor sector witnessed renewed play with notable interest in Colonial Motors, Diesel and Motor Engineering and United Motors. The latter closed with a gain of 5.1% at LKR113.1 after an off-board block of 1 mn shares which was crossed off at LKR110.0 while the former counters secured gains of 8.3% and 1.6% respectAively. Renewed interest in Cargills led two off market blocks amounting to 670k shares at LKR165.0.

Strong on-board interest on Piramal Glass as it traded at a 52-week high: Piramal Glass was noted in the top turnover slot with several large blocks being picked at its new 52-week high of LKR6.9. The counter offers attractive dividend yields of 5.7% and 6.1% on FY14E and FY15E net earnings whilst trading below the manufacturing sector trailing PER of 11.6.
http://lbt.lk/stock-market

The year-to-date net foreign inflow to listed equities crossed the Rs. 10 billion mark yesterday, reinforcing the attractiveness of select opportunities at the Colombo Bourse.

The milestone was achieved when owing to foreign buying of Rs. 1.08 billion with sales being Rs. 229 million, resulting in a net inflow of Rs. 860 million.

According to Softlogic Stockbrokers, year-to-date net foreign inflow as of yesterday was Rs. 10.6 billion.

Foreign buying was heavy on JKH, NDB and United Motors.

The continued robust net inflows on the back of a record Rs. 39 billion netted last year has been outstanding for the Colombo Bourse, apart from boosting overall local investor sentiments in spite of many still remaining inactive.

The Colombo Bourse returned to positive territory yesterday on the strength of foreign interest as well as locals chipping in following a fresh round of heavy profit taking seen in the previous two days.

Thanks to gains by 110 counters (while NEST positively contributed by four points), the ASI was up 14 points helping its year-to-date return to be above 10% whilst S&P SL 20 Index dipped by two points though its year-to-date remains at 13.4%.

NDB Stockbrokers said the broader market continued to move up with interest primarily seen in blue chips and foreign buying dominated market activity with a contribution of 64%.

“Profit taking was seen in banking sector with lower profitability reported for FY12Q1 while motor sector companies such as United Motors and Colonial Motors also drew significant interest,” it added.

The Banking, Finance & Insurance sector was the top contributor to the market turnover (due to National Development Bank) and the sector index decreased by 0.37%. The share price of National Development Bank dropped Rs. 4.10 (2.29%) to close at Rs 174.90.

The Diversified sector became the second highest contributor to the turnover (due to John Keells Holdings) and the sector index gained by 0.44%. The share price of John Keells Holdings gained Rs 1.90 (0.70%) to close at Rs. 274.90.

Cargills Ceylon, United Motors and Piramal Glass were also among the top turnover contributors. The share price of Cargills Ceylon moved up Rs. 4.50 (2.82%) to close at Rs. 164. The share price of United Motors jumped Rs. 5.40 (5.02%) to close at Rs. 113. The share price of Piramal Glass increased Rs. 0.10 (1.47%) to close at Rs. 6.90.

Softlogic said the Bourse reverted back to the green on a volatile note with renewed buying interest.
Gains denoted in heavy weights Nestle Lanka (+1.8%), Carsons Cumberbatch (+1.4%), Hatton National Bank (+1.8%) and John Keells Holdings (+0.4%) supported the uptrend of the index while marginal dips in banking players in the S&P SL20 calibre led the index to close marginally down.

Softlogic said 15 crossings added 54% to the turnover spearheaded by JKH which saw seven off-board deals which carried 1.25 million shares at Rs. 274.0 and Rs. 275. The counter touched a new 52-week high of Rs. 275 with majority of on-board interest weighing towards the selling side.

“BFI sector interest continued highlighting Sampath Bank (-1.5%), National Development Bank (-2.3%) and Commercial Bank (-1.4%) creating further opportunity to accumulate,” Softlogic said, adding the former counters encountered one and four crossings each at Rs. 225 and Rs. 175.

Piramal Glass was noted in the top turnover slot with several large blocks being picked at its new 52-week high of Rs. 6.9. The counter offers attractive dividend yields of 5.7% and 6.1% on FY14E and FY15E net earnings whilst trading below the manufacturing sector trailing PER of 11.6, according to Softlogic.

LOLC Securities said there was interest on PCH while the price closed at Rs. 3.80 with a gain of 11.76%.
DNH Financial said while pockets of corporate results are trickling into the market, the majority was yet to be released.

“While we concede with the fact that most investors have largely been sitting in the wings over the last several months in anticipation of a market trigger that would propel the market to the next level, with the reporting season having just commenced, we advise investors to refrain from assuming any speculative positions but concentrate on carefully selecting counters that will benefit from the robust domestic consumption story and report sustainable earnings growth and healthy cash flows,” DNH added.
http://www.ft.lk/2013/05/16/net-foreign-inflow-to-cse-tops-rs-10-b-mark/