Sri Lankan shares at 3-week low ahead of policy review

Sri Lanka stocks close down 0.8-pct
June 06, 2013 (LBO) - Sri Lanka's stocks closed down 0.79 percent on Thursday with the for a fourth consecutive day due to profit taking by investors and losses in heavy index companies, brokers said.

The benchmark Colombo All Share Index closed 50.46 points lower at 6,372.38 and the S&P SL 20 Index closed 53.49 points lower at 3,581.56 down 1.47 percent.

Turnover was 1.3 billion rupees up from 818 million day earlier.

Foreigners brought 744 million rupees worth shares while selling 191 million rupees of shares, in a day that 59 stocks advanced and 137 stocks declined.

The Lion Brewery contributed most to the index gain closing at 405.00 rupees up 13.70 rupees, Ceylinco Insurance closed at 1,039.00 rupees up 39.00 rupees and Commercial Leasing and Finance gained 10 cents to close at 04.20 rupees.

Kotmale Holdings was the top gainer Thursday gaining 7.30 rupee to close at 53.50 rupees, helped by a crossing of 500,000 shares at 55 rupees per share. Brokers speculate that Cargills, the parent of Kotmale is trying to increase its stake.

Cargills closed at 180.60 rupees down 3.40 rupees.

The main crossing were recorded by Ceylon & Foreign, a crossing of 12.5 million shares at 8 rupees per share to close at 7.30 rupees up 20 cents.

Asian markets sank Thursday following a sell-off on Wall Street, where dealers were spooked by disappointing US jobs data. The dollar rose slightly after shedding around one percent against the yen in New York.

Tokyo fell 0.85 percent, or 110.85 points, to 12,904.02, extending an almost four percent decline on Wednesday while Hong Kong lost 1.05 percent, or 230.81 points, to close at 21,838.43. Shanghai was down 1.27 percent, or 28.82 points, at 2,242.11.

Commercial Bank of Ceylon closed at 122.90 rupees down 40 cents with a crossing of two million shares at 123.50 rupees per share, Hatton National Bank too had a crossing of two million shares at 169.50 rupees per share and closed at 169.30 rupees up 50 cents.

DFCC Bank closed at 142.80 rupees up 1.10 rupees and National Development Bank closed at 172.80 rupees, down 80 cents.

Pan Asia closed at 20.40 rupees down 10 cents. Union Bank of Colombo closed at 19.10 rupees down 10 cents and Sampath Bank lost 60 cents to close at 219.30 rupees.

LB Finance closed at 132.50 rupees down 1.40 rupees and Peoples Leasing and Finance closed at 15.00 rupees up 10 cents.

Distilleries Company lost 3.00 rupees to close at 196.90 rupees and Ceylon Tobacco Company too lost 24.60 rupees to close at 975.00 rupees.

John Keells Holdings lost 6.20 rupees to close at 273.20 rupees and Nestle Lanka closed at 1,980.10 rupees down 3.30 rupees.

Aitken Spence closed at 134.50 down 40 cents. Browns Investments closed flat at 03.30 rupees.

Softlogic Holding closed at 11.10 rupees down 20 cents and Vallibel One closed at 19.10 rupees down 10 cents.

Sri Lanka Telecom closed at 42.00 rupees down 30 cents and Dialog Axiata closed flat at 09.30 rupees. (Ends)
http://www.lankabusinessonline.com/news/sri-lanka-stocks-close-down-0.8-pct/1474637674

COLOMBO, June 6 (Reuters) - Sri Lankan shares fell for a fourth straight session on Thursday to their lowest close in three weeks, a day ahead of the central bank's monetary policy review announcement, as investors booked profits in blue-chip
companies like John Keells Holdings and Chevron Lubricants Lanka PLC.

However, foreign investors continued to buy shares on a net basis for a 20th straight session. The bourse saw a net foreign inflow of 552 million rupees, extending year-to-date inflows to 15.31 billion rupees.

The main stock index fell 0.79 percent, or 50.46 points, to 6,372.38, the lowest close since May 16.

Foreign investors accounted for around 54.5 percent of the day's turnover of 1.37 billion rupees ($10.83 million), more than this year's daily average of 1.05 billion rupees.

"Market came down on selling in blue chips. There could be panic selling before it gains again," said a stockbroker asking not to be named.

The market expects the central bank to keep key policy rates steady at its policy review after an unexpected 50 basis point rate cut last month.

Shares in conglomerate John Keells Holdings fell 2.19 percent to 273.20 rupees, while Chevron Lubricants Lanka plummeted 9 percent to 323.70 rupees.

The market's 14-day Relative Strength Index (RSI) fell to a neutral region of 60.626 on Thursday after being in the overbought area since April 16, Thomson Reuters data showed.

The rupee ended firmer at 126.30/40 per dollar from Wednesday's close of 126.43/45 on thin inflows from stocks-related transactions, dealers said.
($1 = 126.5000 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)
http://www.reuters.com/article/2013/06/06/markets-srilanka-idUSL3N0EI2I420130606

The Colombo bourse yesterday took a sharp tumble with turnover at Rs.1.37 billion, up from the previous day’s Rs.818.4 million, thanks to block trades contributing Rs.874.4 million to business volumes despite the sharp fall in both indices, brokers said.

The All Share Price Index was down 50.46 points (0.79%) while S&P SL20 was down 53.49 points (1.47%) with 79 gainers strongly outpaced by 139 losers while 96 counters closed flat.

Foreign purchases amounted to Rs. 744.29 million, leading to a net inflow of Rs. 552.32 million.

Block trades in Ceylon Tobacco, Kotmale Holdings, HNB (voting), Commercial Bank (voting), CFT and JKH provided most of the day’s turnover.

"Declines outweighed advances by almost 2:1 at market close, with the ASPI ending lower for a fourth consecutive day. Turnover crossed Rs.1bn mainly on the back of crossings on JKH, HNB, CFT, COMB, CTC, and LAMB, which collectively accounted for over 60% of turnover," John Keells Stockbrokers said.

Brokers said that a parcel of 54,000 CTC was crossed at Rs.998 contributing Rs.54.7 million to turnover, nearly 0.5 million Kotmale changed hands at Rs.55 million generating a turnover of Rs.25.8 million, 2 million HNB was done in a single block at Rs.169.50 contributing the day’s highest turnover of Rs.339 million; Commercial Bank saw 2 million shares crossed at Rs.123 and Rs.123.50 contributing Rs.346.8 million to turnover, CFT saw 12.5 million shares crossed at Rs.8 generating Rs.100.1 million and JKH saw a parcel of 0.3 million shares crossed at Rs.270 contributing Rs.81 million.

Brokers said much of yesterday’s steep fall in the indices was due to retail selling while some high net worth and institutional buying continued.

They said there was a sharp fall in Chevron which closed Rs.30.80 down at Rs.324.90 within a trading range of Rs.310 and Rs.355 though contributing the top turnover of Rs.92.2 million on floor trades.

Similarly, JKH too lost Rs.11.40 to close at Rs.268 on 0.1 million shares done between Rs.268 and Rs.280 while Dimo lost Rs.8.90 to close at Rs.561 on 19,091 shares done between Rs.551 and Rs.567.90.

Brokers said that JKH has been falling since foreign buying dried up while Chevron which moved up sharply on a large block trade a few days ago was not able to sustain that price level.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=80698