Downtrend on CSE continues

sriranga

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COLOMBO, Nov 26 (Reuters) - Sri Lankan stocks fell for a third straight session on Tuesday to hit a near 10-week closing low, as investors turned to high-yielding debentures, stockbrokers said, while concerns over lack of clarifications about taxes in the 2014 budget proposals weighed on the sentiment.

The main stock index closed down 0.48 percent, or 27.66 points, at 5,748.01, its lowest close since Sept. 18.

'The debt market with some debentures is attracting investors who otherwise would have invested in stocks,' said Prashan Fernando, CEO at Acuity Stockbrokers.

'Those debentures are with a higher return than fixed-deposits and the returns are tax free.'

Lack of clarity in 2014 budget proposals unveiled by Sri Lankan President Mahinda Rajapaksa, who is also the finance minister, also continued to weigh on the sentiment.

The budget aims to spur growth, shrink the budget deficit and expand the stock exchange in Colombo.

The day's turnover was 464.7 million rupees ($3.54 million), above half of this year's daily average of around 850 million rupees.

The banking sector index fell 0.86 percent to a near 10-week low on Tuesday, which analysts attributed to a budget proposal of a 2 percent nation-building tax on banks and the financial sector with effect from January.

The market heavyweight and top conglomerate John Keells Holdings PLC fell 0.83 percent to 216 rupees.

Foreign investors were net sellers of 29.8 million rupees worth of shares. They have been net buyers of 22.56 billion rupees so far this year.

($1 = 131.1500 Sri Lanka rupees)

(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Gopakumar Warrier)

(shihar.aneez@thomsonreuters.com)

(+94-11-232-5540; Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net twitter.com/shiharaneez)
http://www.xe.com/news/2013/11/26/3684545.htm

Redbulls · 2 Sri Lanka stocks close lower Tue Nov 26, 2013 7:38 pm

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Nov 26, 2013 (LBO) - Sri Lanka stocks fell for the third consecutive day with diversified and property stocks losing ground amid foreign selling, brokers said.

The Colombo benchmark All Share Price Index closed 27.66 points lower at 5,748.01, down 0.48 percent. The S&P SL20 closed 14.25 points lower at 3,168.69, down 0.45 percent.

Turnover was 464.68 million rupees, up from 193.48 million rupees a day earlier, with stocks of 134 firms closing in the red against 38 gainers.

Foreigners brought 107 million rupees worth shares while selling 156 million rupees of shares.

Dialog Axiata closed flat at 9.00 rupees with market transactions of 93 million rupees contributing to 20 percent of total turnover.

C T Land closed 1.40 rupees higher at 30.50 rupees with off market transaction of 65 million rupees contributed to 14 percent of total turnover.

JKH closed 1.80 rupees lower at 216.00 rupees and Asian Hotels and Properties closed 2.90 rupees lower at 66.10 rupees, contributing most to the index drop.

JKH’s W0022 warrants closed 1.00 rupee lower at 56.60 rupees and its W0023 warrants closed 1.50 rupees lower at 63.00 rupees.

Commercial Leasing and Finance closed 20 cents lower at 3.80 rupees and Bukit Darah closed 7.80 rupees lower at 652.00 rupees.

Distilleries closed 4.60 rupees higher at 189.10 rupees and Trans Asia Hotels closed 4.90 rupees higher at 84.90 rupees.

Laugfs Gas closed 70 cents higher at 29.90 rupees and Hemas Holdings closed 40 cents higher at 33.00 rupees.

Sampath Bank closed 10 cents lower at 162.00 rupees and Singer Sri Lanka closed 60 cents higher at 91.00 rupees.

Ceylon Tobacco Company closed flat at 1,056.20 rupees and Cargills Ceylon also closed flat at 154.70 rupees.

Nestle Lanka closed flat at 1,930.00 rupees and Ceylinco Insurance closed 21.00 rupees lower at 1,283.00 rupees.

Lion Brewery closed 4.90 rupees lower at 340.10 rupees and Carson Cumberbatch closed 3.60 rupees higher at 365.00 rupees.

Sri Lanka Telecom closed flat at 37.20 rupees and Commercial Bank closed 40 cents lower at 113.00 rupees.

HNB closed 50 cents lower at 144.00 rupees and Lanka Orix Leasing Company closed 10 cents higher at 63.10 rupees.

Aitken Spence closed 1.80 rupees lower at 108.10 rupees and Aitken Spence Hotel Holdings closed 20 cents lower at 64.90 rupees.

DFCC closed 10 cents lower at 119.90 rupees.

NDB closed flat at 151.00 rupees and Touchwood Investments closed 10 cents lower at 2.80 rupees.
http://www.lankabusinessonline.com/news/sri-lanka-stocks-close-lower/1781492549

Redbulls · 3 Downtrend on CSE continues Tue Nov 26, 2013 10:56 pm

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ASPI below 5,750 technical barrier

The downturn on the Colombo bourse continued yesterday on a turnover of Rs.464.7 million, up from the previous day’s Rs.193.4 million, with both indices down – the All Share by 27.66 points (0.48%) and S&P SL20 by 14.25 points (0.45%) with 131 losers way ahead of 53 gainers while 136 counters closed flat.

Brokers and analysts noted that the All Share Price Index was now below 5,750 technical resistance barrier.

There was a single crossing of CT Land with a block trade of 2 million shares at Rs.32.50 generating a turnover of Rs.65 million.

``The ASPI ended lower amid improved turnover levels which were dominated by a block trade on CTLD and retail activity on DIAL," John Keells Stock Brokers said in a market report.

There was a foreign outflow of Rs. 49.38 million with sales of Rs. 156.63 million ahead of purchases of Rs. 107.25 million.

Dialog was the biggest turnover generator closing flat at Rs.9 on over 10.3 million shares done between Rs.8.90 and Rs.9.10 contributing Rs.93.1 million to turnover. Brokers said that many of the trades were in fairly large parcels.

HNB followed closing 50 cents down at Rs.144 on over 0.2 million shares done between Rs.144 and Rs.144.50 contributing Rs.33.9 million to turnover with Commercial Bank also seeing over 0.2 million shares done between Rs.112 and Rs.113.80 closing 40 cents down at Rs.113 contributing Rs.27.3 million to turnover.

Brokers said that many of the most traded stocks were transacted in fairly large parcels with Aitken Spence closing Rs.1.90 down at Rs.108 with over 0.2 million shares done between Rs.108 and Rs.110 contributing Rs.25.3 million to turnover, JKH closing Rs.1.80 down at Rs.216 with slightly over 0.1 million shares done between Rs.216 and Rs.217 generating Rs.24.3 million turnover and Distilleries closing Rs.4.60 up at Rs.189.10 on 95,001 shares done between Rs.185 and Rs.190 contributing Rs.18 million to turnover.

Other counters showing some volume included NDB closing flat at Rs.151 on 98,500 shares, Richard Pieris closing flat at Rs.6.60 on nearly 2.2 million shares, HNB (non-voting) closing 20 cents up at Rs.112.70 on over 0.1 million shares and Sampath closing 90 cents up at Rs.163 on 49,481 shares.

Vallibel Power Erathna saw retail activity after a dividend of 40 cents per share for 2013/14 was announced, closing 20 cents up at Rs.6 on over 1.3 million shares.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=92836

Slstock · 4 Re: Downtrend on CSE continues Wed Nov 27, 2013 3:32 am

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I upheld last year Budget as I thought it was one with far sight.

But this budget left so many grey areas on taxes. People seem to be worried about hidden tax increases.

Food tax increases seems to be very unfair. In any country that want to develop faster, first priority to is to keep people healthy. Taxing food ( including essential day to day items and not luxury) like this is really bad.

If you must tax, identify areas where the common folk is not punched in the stomach frequently. They were already vomitting with massive Electricity hikes which resulted in everything going up. I saw the axes for Salmon tins and sprat etc. Sheesh. These are not 10% taxes . Some times it is 50% or more.

I hope people in Power understand there is a limit to push common people. There will be point they cannot bear anymore and have no choice. These politicos should think about that if ( appreant they don;t) .

Right now if there was a stronger opposition , the pressure to point out such things and correct them would be more . But it seems someone decides and millions of people pay.

Not done.

kalum · 5 Re: Downtrend on CSE continues Wed Nov 27, 2013 9:43 am

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slstock wrote:
I upheld last year Budget as I thought it was one with far sight.

But this budget left so many grey areas on taxes. People seem to be worried about hidden tax increases.

Food tax increases seems to be very unfair. In any country that want to develop faster, first priority to is to keep people healthy. Taxing food ( including essential day to day items and not luxury) like this is really bad.

If you must tax, identify areas where the common folk is not punched in the stomach frequently. They were already vomitting with massive Electricity hikes which resulted in everything going up. I saw the axes for Salmon tins and sprat etc. Sheesh. These are not 10% taxes . Some times it is 50% or more.

I hope people in Power understand there is a limit to push common people. There will be point they cannot bear anymore and have no choice. These politicos should think about that if ( appreant they don;t) .

Right now if there was a stronger opposition , the pressure to point out such things and correct them would be more . But it seems someone decides and millions of people pay.

Not done.

Gov don't looking for efficient ways of taxing. they could improve the monitoring system to identify captured income by certain professional like doctors, businessman that earn multimillion in a month but don't disclose their real earning. Giv could easily earn much if they implement proper capturing system rather than taxing on food and beverages. They should have increase the tax for cigarette and liquor instead. Cool

D.G.Dayaratne · 6 Re: Downtrend on CSE continues Wed Nov 27, 2013 10:08 am

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Stock market and Sl Economy are two independent variables in sri Lanka at present.No effect of budget proposals to stock market.

most of people do not have any confidence due to mismanagement
undue influence and blunders after 2009.I know some people want
to abundant stock market when they recover the loss incurred after 2010

Authorities should take corrective action immediately

Confidence building is a long term process.

So far no effective action against crooks and manipulates who
misdirect stock market after 2009