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Market Review – 11th Apr 2016

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1 Market Review – 11th Apr 2016 Empty Market Review – 11th Apr 2016 Mon Apr 11, 2016 8:06 pm

fireshelter

fireshelter
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Colombo bourse maintained its level of activity despite the holiday season ahead, riding on positive news relating to the latest ties with China and hopes of the IMF package. The All Share Price Index closed perfectly flat with no returns or losses at 6,275.62, while the blue chips presented a more positive result to move the index up by 13.77 index points (+0.42%) to close at 3,325.71.

Two Scripts from the finance sector balanced the index taking extremes on either end. Lanka Orix Leasing Company (closed at LKR 82.40, +7.01%) closed as the positive script, while Commercial Leasing & Finance (closed at LKR 3.60, -10.00%) slid to the negative end.

Daily Market turnover reached LKR 816mn with the blue chip company John Keells Holdings responsible for 43% of today’s turnover. The company turnover comprised of 2 crossings of 1.2mn shares at price per share of LKR 151.00. Another off the board transaction of 0.1mn shares at LKR 310.00 per share was recorded in Chevron Lubricants prior to its XD date tomorrow. Accordingly, crossings accounted for 26% of today’s turnover. Trailing John Keells Holding which topped the turnover list with LKR 352mn was Chevron Lubricants with LKR 160mn and Peoples Leasing & Finance with LKR 48mn worth of turnover.

The construction sector and the poultry sector gained the most attention today. Access Engineering and MTD Walkers represented the construction sector, as both scripts recorded gains of +3.15% and +5.90% respectively. Ceylon Grain Elevators and Three Acre farms from the poultry segment increased in price after declaring their first & final dividends during today’s session. Further share price movements relating to dividends included Richard Pieris depreciating in price on its XD date.

With gainers and losers divided almost equally, market breathe was neutral at the close of today’s session. Out of the 218 scripts that were traded, 62 scripts advanced in price while 70 declined.

4.7mn ordinary voting shares of Sampath Bank were listed today pursuant to a script dividend and the share closed at LKR 225.00, +1.4%.

Foreign investors crossed to the buying side after seven days of continuous selling with LKR 76mn worth of net foreign inflows and 45% foreign participation. Net inflows were mainly seen in the counters such as John Keells Holdings (LKR 242mn), Commercial Bank (LKR 29mn) and CT Holdings (LKR 25mn) while net foreign outflows were mainly seen in Chevron Lubricants (LKR 159mn).

Meanwhile, at today’s Treasury bill auction, the three month yield decreased by 02bps to 8.45% while the six month and one year Treasury bill rate reduced to 9.54% (-03bps) & 10.10% (-13bps) respectively. CBSL offered LKR 23bn worth of Treasury bills today and the auction was oversubscribed by 3.0 times with bids received amounting to LKR 69bn. It was decided to accept LKR 31.6bn worth of bills.
Source: LSL

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