Market Review – 25th Aug 2015

Colombo bourse extended the bearish momentum for the second consecutive session with severe losses amid notable sell offs in blue chips. Benchmark All Share Price index drop significantly by 99.51 points or 1.36% to end at 7,231.58 while S&P SL 20 index fall below the 4,000 mark to end at a 6-week low of 3,982.96 (70.71 points, -1.74%). Subsequent to today’s drop, the year-to-date ASI return turned negative (-0.9%).

Daily market turnover was LKR 1.4bn. John Keells Holdings topped the turnover list with LKR 207mn followed by Commercial Bank (LKR 190mn), Aitken Spence (LKR 153mn) and Sierra Cable (LKR 66mn). Several negotiated deals were recorded in Anilana Hotels & Properties (4.5mn shares at LKR 5.00 per share), Commercial Bank (1mn shares at a price range of LKR 169.00-168.00 per share) and Aitken Spence (0.3mn shares at LKR 98.00 per share). Total crossings accounted for 15% of the market turnover.

Price depreciations in blue chips such as John Keells Holdings (closed at LKR 179.90, -2.2%), Ceylon Tobacco (closed at LKR 979.00, -0.1%) and Nestle Lanka (closed at LKR 2,050.00, -2.8%) affected negatively to the index performance.

Further negative price movements in index high banking counters namely, National Development Bank (-4%), Hatton National Bank (-2.5%), Sampath Bank (-1.5%), DFCC Bank (-0.6%) and Commercial Bank (-0.4%) also contributed negatively to the market performance.

Reflecting the negative market breath, losers surpassed the gainers 175 to 49 while 40 counters remained unchanged. Cash map remained unchanged at 35%. 13 counters declined to 52wk low prices while only Taprobane Holdings advanced to a fresh 52wk high price of LKR 5.40, +6%. However the counter closed at LKR 5.30, +4%.

Ceylon Grain Elevators continued to attract investor interest during the session. Further shares of Lanka IOC, John Keells Holdings & its warrant (W0022) and Aitken Spence were among mostly traded counters.

Meanwhile Vallibel One declared an interim dividend of LKR 0.50 per share during the session while Distilleries declared a final dividend of LKR 3.25 per share. Despite the dividend announcements both counters witnessed negative returns where Vallibel One closed at LKR 24.30, -0.8% while Distilleries closed at LKR 285.00, -3.4%.

Foreign investors continued to off-load shares for the third consecutive session with a net foreign outflow of LKR 200mn. Foreign participation was 29%. Net foreign outflow were seen in John Keells Holdings (LKR 83mn), Sierra Cables (LKR 56mn) and Commercial Bank (LKR 56mn) while net foreign inflows were mainly seen in Laugfs Gas voting (LKR 41mn) and Laugfs Gas non-voting (LKR 19mn).
Source: LSL

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Reuters: Sri Lankan shares fell more than 1 percent to hit a near five-week closing low on Tuesday as foreign investors sold off risky assets on fears of a China-led global economic slowdown and panic selling by retail investors for month-end settlements.

The main stock index ended down 1.36 percent, or 99.51 points, at 7,231.58, its lowest close since July 23. The index has fallen 3.2 percent in the last two sessions, mainly due to a global selloff.

Turnover stood at 1.44 billion ($10.73 million), above this year's daily average of 1.16 billion rupees.

"With the huge fall yesterday there was some panic selling," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd. "The market will be slow, dull and in the red this week."

Mathew expects the market to recover in September.

Foreign investors were net sellers of 199.7 million rupees worth of shares on Tuesday, extending the year to date net foreign outflow to 1.53 billion rupees.

Shares in conglomerate John Keells Holdings Plc fell 2.12 percent, while Nestle Lanka Plc fell 2.19 percent, dragging the index down.

($1 = 134.2500 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)