Trading Tuesday - Reuters Update - Sri Lanka stx flat as profit-taking erases early gains

Sri Lanka stocks rally loses steam
Nov 29, 2011 (LBO) - Sri Lanka's main share index closed slightly weaker Tuesday after a morning rally on the back of Monday's surge in prices lost steam on profit-taking, brokers said.

The main All Share Price Index fell 0.04 percent (2.16 points) to 6,020.08, while the more liquid Milanka index rose 0.26 percent (13.39 points) to close at 5,246.62, according to stock exchange figures.
Turnover was 1.7 billion rupees.

Shares had shot up 3.6 percent Monday on optimism a meeting between stockbrokers and President Mahinda Rajapaksa could yield a relaxation of credit rules and price restrictions.

On Tuesday, Entrust Securities was the day's highest gainer, closing at 40 rupees, up 20 from its reference price of 20 rupees at which it began trading.

The stock hit a high of 55.50 rupees with over three million shares traded, generating the second highest turnover.

There were two crossings or off-market private deals, one of 500,000 shares at 51 rupees each and the other of a million shares at 50 rupees each.


Sinhaputhra Finance was the second highest gainer, closing at 120 rupees, up 18 on a sole trade of 100 shares.
John Keells Holdings closed at 174.30 rupees, down 70 cents, after hitting a day's high of 177 rupees.

HVA Foods was the most actively traded stock, closing at 39.20 rupees, down 1.60 rupees, with over 3.9 million shares done. It hit a high of 44.40 rupees.

East West Properties was also heavily traded, closing at 26.90 rupees, up 30 cents, and hitting a high of 30.90.

Colombo Land & Development Company was also actively traded, closing at 51.60 rupees, down 2.10, after touching 58.50.
http://www.lbo.lk/fullstory.php?nid=135151854

* Investors wait for key requests' implementation president meeting -brokers
* Foreign outflow at 47.3 million rupees
* Rupee flat for 5th session; Cenbank sold $180 mln to defend rupee since devaluation- dealers

COLOMBO, Nov 29 (Reuters) - Sri Lanka's stock market ended flat on Tuesday after gaining more than 2 percent in early trade as retail investors booked profits, while many stayed away awaiting cues on whether the President Mahinda Rajapaksa will implement broker requests to boost the flagging bourse.

The island nation's main share index surged 2.59 percent in early trade but closed 0.04 percent or 2.16 points weaker at 6,020.08.

The bourse surged 4.14 percent on Monday from a 14-month low after Rajapaksa met the heads of stock brokerages after last week's currency devaluation and foreign selling amid a tightening credit crunch. "It was an artificial hype yesterday and the market gain was purely because of sentiment after the president's meeting. But today we saw no follow-up of that meeting and those requests being implemented," said an analyst on condition of anonymity.

Brokers have complained investor sentiment has turned negative due to firmer regulation by Securities and Exchange Commission (SEC), which has initiated probes into share price manipulation and tightened credit rules.

Shares in Hva Foods Ltd closed 3.92 percent weaker at 39.20 rupees a share a day after it shot 26.71 percent up while shares in Colombo Land and Development Company PLC also fell 3.91 percent to 51.60 rupees. It rose 18 percent on Monday.

The debut issue of money brokering firm Entrust Securities Ltd closed at 40 rupees a share, twice of its introductory price.

Market heavyweight John Keells Holdings PLC ended 0.40 percent weaker at 174.30 rupees.

The day's turnover was 1.68 billion Sri Lanka rupees ($14.75 million), highest since Nov. 18 but well below last year's average of 2.4 billion and this year's 2.4 billion.

Total volume was 99 million shares, against a five-day average of 82.2 million. The 30-day and 90-day average trading volumes were 58 million and 101.3 million. Last year's daily average was 67.9 million.

The bourse has fallen 11.3 percent since Oct. 1 and is Asia's 11th-best performer with a year-to-date loss of 9.28 percent. It gave Asia's best returns in 2009 and 2010.

The bourse saw a net foreign outflow of 47.3 million rupees on Tuesday, and thus far in 2011, offshore investors have sold 17.5 billion, and a record 26.4 billion in 2010.

On Tuesday, the bourse was in the neutral territory with the 14-day relative strength index at 39.4, above the lower neutral range of 30.
Losers outnumbered gainers by 119 to 100 on Tuesday, Thomson Reuters data showed.

The rupee closed flat at 113.89/90 rupees a dollar for the fifth straight session, dealers said.

FACTORS TO WATCH:
- Investors' moods after the devaluation
- The potential for imported inflation post-devaluation
- Reserve cost of defending the new rupee rate

DATA
Colombo Stock Exchange:
Stock Market Volume (Shares)
Current Volume-----------Average Volume 30 Days
99,005,922----------------------------58,041,691

Yield and Price of Sri Lanka's sovereign bonds:
Maturing year----Tenure------Amount-----------Reuters yield
2012-------------5-yr--------$500 mln----------6.100-5.814
2014-------------5-yr--------$500 mln----------5.264-4.928
2020------------10-yr--------$1,000 mln--------6.1742-6.0272
2021------------10-yr--------$1,000 mln--------5.9751-5.8399

($1 = 113.9000 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bryson Hull)
http://uk.reuters.com/article/2011/11/29/markets-srilanka-idUKL4E7MT1OS20111129