Trading Friday - Reuters Update - Sri Lanka's stx down after rally on profit-taking

Sri Lanka stocks end down 0.9-pct
Dec 02, 2011 (LBO) - Sri Lankan stocks closed lower Friday, losing most of Thursday's gains with some profit-taking seen, brokers said.

The main All Share Price Index fell 0.94 percent (56.81 points) to 6,087.86, while the more liquid Milanka index fell 1.08 percent (57.18 points) to close at 5,246.58, according to provisional stock exchange figures.
Turnover was 1.4 billion rupees.

Market heavyweight John Keells Holdings fell 1.70 rupees to close at 168.20 rupees, after hitting 174.50 during the day, with 214,100 shares traded.

Debutant Entrust Securities saw heavy trading, generating the second highest turnover, and closing at 70.70 rupees, down 20 cents, after hitting a day's high of 81, with over two million shares traded.

Trade Finance & Invetsment Ltd. was actively traded, closing at 22.40 rupees, up 2.80, with 3.9 million shares done, including one crossing or off-market private deal of 750,000 shares at 27 rupees each. The stock hit a high of 29.40.

The Lanka Hospital Corporation was also actively traded, closing 3.70 rupees lower at 54.60 rupees, with over 1.7 million shares done. It hit a high of 60 rupees.

Share prices have been gyrating in recent days as influential investors and stock brokers sought government intervention to prop up the market by forcing out regulators who probed insider dealing and fraud and pressing for looser credit and price rules.
The market has been in the doldrums in recent weeks after hitting record highs for two successive years following the end of the island's 30-year ethnic war in 2009 that raised fears of a bubble.
http://www.lbo.lk/fullstory.php?nid=846191914

Sad story, mkt down

bakapandithaya wrote:Sad story, mkt down

We had 3 days of up this week. It is healthy to have a down day or two in the middle under any circumstance.

Also market is still running on speculation of news as investor confidence is not fully restored.
Let see trend on monday to see whether it would recover towards the end of the day.

slstock wrote:

bakapandithaya wrote:Sad story, mkt down

We had 3 days of up this week. It is healthy to have a down day or two in the middle under any circumstance.

Also market is still running on speculation of news as investor confidence is not fully restored.
Let see trend on monday to see whether it would recover towards the end of the day.

Yes, slstock, it is good to have a day like this

slstock,
I agree with you 100%. That should be the real reason for this downward.

But today is not very very bad.

Fri Dec 2, 2011 1:06pm GMT

* Retailers sweep up profits-brokers
* Foreign investors sell Keells
* Rupee flat for 8th session

COLOMBO, Dec 2 (Reuters) - Sri Lanka's stock market edged down on Friday from its two-week high as retail investors booked profits after a two-day rally amid the resignation of the top capital markets regulator, and others awaited a clear trend.

The island nation's main share index closed 0.92 or 56.81 points down at 6,087.86 from its highest since Nov. 14.

On Thursday, SEC Chairperson Indrani Sugathadasa stepped down "to uphold her principles," barely a month after her deputy was moved amid broker complaints that tougher regulation was hurting sentiment.

"Though the market is driven on the sentiment that there will be more credits and margin trading, those will not boost share prices fundamentally," said an analyst on condition of anonymity.

Brokers have complained investor sentiment has turned negative due to firmer regulation by the SEC, which has looked into price manipulation and cut the amount of credit available, which has hit broker commissions and trading volume.

The bourse surged 4.14 percent on Monday from a 14-month low after Rajapaksa met the heads of stock brokerages who urged the president to take action to help the bourse rebound.

The day's turnover was 1.44 billion Sri Lanka rupees ($12.65 million), less than last year's average of 2.4 billion and this year's 2.4 billion.

Shares in retail favourite Touchwood Investment PLC fell 3.43 percent to 22.50 rupees while Entrust Securities Ltd fell 0.28 percent to 70.70 rupees. Market heavyweight John Keells Holdings PLC, which saw foreign selling of 114,100 shares, ended 1.00 percent weaker at 168.20 rupees.

Total volume was 83.7 million shares, against a five-day average of 90.6 million. The 30-day and 90-day average trading volumes were 61.2 million and 102.7 million. Last year's daily average was 67.9 million.

The bourse has fallen 10.26 percent since Oct. 1. It is now Asia's 12th-best performer with a year-to-date loss of 8.26 percent after being at the top until June. It gave Asia's best returns in 2009 and 2010.

The bourse saw a net foreign outflow of 49.5 million rupees on Friday, and thus far in 2011, offshore investors have sold 17.8 billion, and a record 26.4 billion in 2010.

On Friday, the bourse was in neutral territory with the 14-day relative strength index at 44.2, above the lower neutral range of 30. Gainers outnumbered losers by 159 to 44 on Friday,The rupee closed flat at 113.89/90 rupees a dollar for the eighth straight session, dealers said.

The central bank on Friday sold around $10 million to defend the currency, dealers said, extending its total dollar sales to $220 million since the 3 percent devaluation on Nov. 22.

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

DATA Colombo Stock Exchange:
Stock Market Volume (Shares)
Current Volume-----------Average Volume 30 Days
83,660,189----------------------------61,156,151

Yield and Price of Sri Lanka's sovereign bonds:
Maturing year----Tenure------Amount-----------Reuters yield
2012-------------5-yr--------$500 mln----------6.620-6.328
2014-------------5-yr--------$500 mln----------5.420-5.082
2020------------10-yr--------$1,000 mln--------6.1741-6.0269
2021------------10-yr--------$1,000 mln--------6.2840 -6.1448

($1 = 113.8750 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bryson Hull)
http://uk.reuters.com/article/2011/12/02/markets-srilanka-idUKL4E7N21TG20111202