Bourse closes marginally lower, further downside feared

COLOMBO, Nov 6 (Reuters) - Sri Lankan stocks fell for a fourth straight session on Wednesday and closed at their lowest level in two weeks, led by banks in low trading volume due to the absence of retail investors, brokers said.

The main index ended down 0.11 percent, or 6.73 points, at 5,906.18, its lowest close since Oct. 23.

The day's turnover was 571.5 million rupees ($4.36 million), less than this year's daily average of about 865 million rupees.

Brokers said the market had not seen a surge despite a declining trend in interest rates after the central bank cut its policy rates to multi-year low last month.

They said the market would not see a sustained gaining trend unless retail investors return to the bourse.

The market has lost 0.78 percent since the central bank cut its key policy rates by 50 basis points on Oct. 15.

Shares in DFCC Bank PLC fell 3.09 percent to 119.20 rupees.

Foreign investors were net buyers of 294.6 million rupees worth of shares, extending the year-to-date net inflow to 23.56 billion rupees.

($1 = 131.1500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

(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/2013/11/06/3645289.htm

Will ASPI stay over 5,900 points?

The Colombo bourse yesterday closed marginally down on a turnover of Rs.571.8 million, up from the previous day’s Rs.220.8 million, with the All Share Price Index declining 6.73 points (0.11%) and S&P SL20 down 8.62 points (0.26%) with 87 losers ahead of 80 gainers while 147 counters closed flat.

A crossing in United Motors where a single parcel of nearly 2.4 million shares was crossed at Rs.108 in a deal worth Rs.256.3 million contributed nearly half the day’s turnover. A parcel of nearly 0.2 million JKH crossed at Rs.223 also contributed Rs.43.6 million to turnover.

"Turnover was poor during much of the day’s trading but looked up later in the day," a broker said. "There was high net worth and retail interest in Access Engineering where nearly a million shares were traded on the floor between Rs.23 and Rs.23.20 after the company announced good quarterly results."

Analysts noted that the All Share Price Index standing at 5,906.18 was only a shade above the 5,900-point barrier. They said if there was a breach of the 5,900 floor, there could be a further sharp fall. Brokers said the market for the last few weeks has been moving in a 100 point band just below the 6,000-point resistance level and 5,900 at the bottom end.

"The ASPI dipped during the latter hours of trading to end marginally lower amid improved market turnover, which was dominated by a block trade on UML," John Keells Stock Brokers said in their market report.

There was a foreign inflow of Rs. 294.6 million with purchases of Rs. 357.81 mn. outpacing sales of Rs. 63.21 mn.

Other counters that showed volume and price gain included Sampath closing 30 cents up at Rs.171.80 on 0.1 million share contributing Rs.18 million to turnover, Tokyo (voting) closing 30 cents up at Rs.26.90 over 0.5 million shares traded contributing Rs.14.8 million to turnover and Hayleys closed Rs.4 up at Rs.295 on 47,580 shares contributing Rs.14 million to turnover.

Penny stocks showing volume included PC House Holding closing 10 cents up at Rs.1.70 on 6.3 million shares, Orient Garments closing 30 cents up at Rs.7.90 on nearly 1.3 million shares and Touchwood closing 10 cents down at Rs.3.90 on nearly 2.1 million shares.

Ceylinco Insurance (non voting) closed Rs. 10 down at Rs.390 up on 30,110 shares, Distilleries closed Rs.1.10 down at Rs.182 on 53,817 shares and NDB closed Rs.2.70 down at Rs.152 on 57,313 shares.

Expolanka Holdings said in a Stock Exchange filing that as part of an on-going restructuring exercise, they had fully divested their holding in two related companies.

These companies are Expolanka Commodities (Pvt) Ltd and Lanka Premier Foods (Pvt) Ltd with the buyer Aberdeen Holdings (Pvt) Ltd. The main shareholders of Abadeen consist of some of the directors of Expolanka Holdings.

A consideration of 75% of the transaction price had been paid on Nov. 6 at the time of signing the agreement with the balance 25% to be settled within a period of three months.

The filing said that the transaction followed a transparent and competitive bidding process managed and facilitated by a leading firm of chartered accountants with the process overseen by the Independent Directors of Expolanka.

Access closed 20 cents up to close at Rs.23.10 with nearly a million shares traded contributing Rs.22.3 million to the day’s turnover.

Aitken Spence led the floor trades closing 90 cents down at Rs.113.00 on 0.3 million shares done between Rs.113 and Rs.115 contributing Rs.34.2 million to turnover. Brokers said that there was foreign buying in the counter.
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