Indices down though turnover tops Rs. 2 billion

June 21, 2013 (LBO) - Sri Lanka's stocks closed down 0.22 percent on Wednesday, due to index heavy stocks extending losses, brokers said.

The benchmark Colombo All Share Index closed 13.54 points lower at 6,072.68 and the S&P SL 20 Index closed 07.60 points lower at 3,422.83 down 0.22 percent.

Turnover was 2.2 million rupees up from 455 million a day earlier.

Foreigners brought 298 million rupees worth shares while selling 934 million rupees in a day that 103 stocks advanced and 79 stocks declined.

Aitken Spence Hotel Holdings contributed most to the index closing at 73.70 rupees up 3.20 rupees, The Bukit Darah gained 9.90 rupees to close at 709.00 rupees and Sri Lanka Telecom gained 50 cents to close at 40.00 rupees.

Negative contributors included John Keells Holdings losing 9.70 rupees to close at 249.30 rupees, Carson Cumberbatch lost 8.80 rupees to close at 435.20 rupees and Commercial Leasing and Finance lost 20 cents to close at 4.00 rupees.

Pan Asia closed flat at 19.00 rupees. Union Bank of Colombo closed at 17.10 rupees up 10 cents and Commercial Bank of Ceylon lost 50 cents to close at 113.40 rupees.

Hatton National Bank closed at 118.00 rupees up 20 cents and Sampath Bank closed at 205.00 rupees up 2.30 rupees helped by a crossing of one million shares at 204 rupees per share.

Nanda Investment and Finance gained 10 cent to close at 8.60 rupees helped by a crossing of 85.5 million shares at 9 rupees per share. JKH to had a crossing of 3.5 million shares at 247 rupees per share.

Nestle Lanka gained 20 cents to close at 1949.80 cents and Dialog Axiata loss 10 cents to close at 8.40 rupees.

Distilleries Company closed at 190.00 rupees up 1.70 rupees and Ceylon Tobacco Company closed at 979.80 rupees up 2.50 rupees.
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Update2 - (Adds closing prices of stock index and rupee)
COLOMBO, June 26 (Reuters) - Sri Lanka's rupee fell 0.6 percent on Wednesday to a near seven-month low, which dealers attributed to dollar demand from foreign banks to accommodate bond sales by offshore investors, but the central bank said it was mainly due to importer demand.
   
The rupee hit 129.70 per dollar in intra-day trade, dealers said, its lowest since Dec. 3 and 0.73 percent weaker from Tuesday's close of 128.70/80, Thomson Reuters data showed.
   
But it recovered to finish at 129.50/55, falling 0.6 percent on the day.
 
"Some foreign bondholders are pulling back from long-term government securities," said one currency dealer from a foreign bank with a branch in Colombo. The dealer declined to be identified.  
   
Nandalal Weerasinghe, the deputy central bank governor, said net outflow during the past two weeks from foreign bond sales was only $12.5 million, whereas dollar demand from importers has been much more on a daily basis.  
 
"There is importer demand for dollars rather than foreign outflows. We haven't seen many foreign investors selling bonds as dealers say. There was an $8 million worth petroleum import bill today. So it is wrong to say the depreciation is due to foreigners selling bonds," said Weerasinghe.
   
Two dealers said an unexpected 2 percentage point cut in commercial banks' statutory reserve ratio (SRR) by the central bank earlier in the day would have also prompted foreigners to either take profits or change positions to go for short-tenure securities.
   
The central bank slashed the SRR in a bid to boost economic growth, after recent monetary easing steps to reduce borrowing costs failed to produce the desired results.
   
The rupee has fallen 1.5 percent this year. It depreciated 10.7 percent in 2012 as the central bank allowed for a flexible exchange rate regime in February last year.
   
Sri Lanka's main stock index fell 0.22 percent or 13.54 points to 6,072.68, its lowest since May 3, on foreign selling in market heavyweight John Keells Holdings amid concerns over a possible pullout by more foreign funds.
   
The market witnessed net foreign outflows of 636.8 million rupees on Wednesday, its highest since Jan. 30. The bourse has enjoyed net foreign inflows of 15.58 billion rupees this year.
   
John Keells fell 3.86 percent to 249 rupees.
   
The day's turnover was at 2.27 billion rupees ($17.61 million), more than twice of this year's daily average of around 1 billion rupees.
($1 = 128.9000 Sri Lanka rupees)

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

The Colombo bourse lost more ground yesterday despite a turnover of Rs.2.27 billion, up from the previous day’s Rs.455.45 million, thanks to block trades in Sampath (Rs.204.5 million), Nanda Investments (Rs.767.2 million) and JKH (Rs.874.6 million) accounting for Rs.1.85 billion of the day’s business volumes.

The All Share Price Index was down 13.54 points (0.22%) and S&P SL20 lost 16.80 points (0.49%) with gainers outpacing losers 125 to 71 while 116 counters closed flat.

Sampath saw a million shares crossed at Rs.204, Nanda Investments nearly 85.3 million shares crossed at Rs.9 and JKH 3.5 million shares crossed at Rs.247.

Brokers said that over 40% of Nanda Investments had changed hands with LOLC and related parties acquiring the stake with a mandatory offer expected to be announced shortly.

``The ASPI gave back modest intraday gains to end lower amid improved activity levels,’’ John Keells Stock Brokers said in a market report. ``Market turnover crossed the Rs. 2bn mark mainly on the back of block trades on JKH, and multiple crossings on NIFL involving the sale of a controlling stake in the company."

Foreigners were net sellers to the tune of Rs. 636.81 million with purchases of Rs. 298.17 and sales of Rs. 934.99.          

On the trading floor, JKH was the most traded stock closing Rs.10 down at Rs.249 on nearly 0.3 million shares done between Rs.248 and Rs.259 contributing Rs.70.2 million to turnover.

Nanda Investments too saw nearly 6 million shares done on the floor between Rs.8.40 and Rs.9 closing 10 cents up at Rs.8.60 and generating Rs.53.3 million to turnover.

Other most traded stocks on the floor included 0.4 million Commercial Bank (voting) closing 80 cents down at Rs.113.10 and contributing Rs.47.8 million to turnover, over 0.4 million NTB closing 80 cents up at Rs.62.80 contributing Rs.26.1 million to turnover and 63,956 Hayleys closing Rs.4.50 up at Rs.313.50 generating Rs.19.7 million turnover.

The NDB closed 30 cents up at Rs.162 on slightly over 0.1 million shares, Sampath closed Rs.2.60 up at Rs.205.30 on 90,315 shares while HNB closed flat at Rs.160 on 0.1 million shares and Seylan (non-voting) closed flat at Rs.35.80 on nearly 0.4 million shares.

Colombo Investment Trust announced a first and final dividend of Re.1 per share for 2012/13 following shareholder approval at a July 26 AGM with the counter trading XD from July 29 and with payment on August 6.

York Arcade Holdings announced a first and final dividend of 40 cents per share for 2012/13 following shareholder approval at an AGM on July 26 with the counter trading XD from July 29 and with payment on August 6.

Sigiriya Village Hotels announced a first and final dividend of Rs.2 per share for 2012/13 following shareholder approval at an AGM on July 18. The counter will trade XD from July 19 with payment on July 30.
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