Stock market stays positive despite political tension over prez poll

Wednesday, 7 January 2015 00:28 - - {{hitsCtrl.values.hits}}

The country’s stock market remained positive yesterday despite heightened political tensions over tomorrow’s crucial presidential election. The benchmark All Share Price Index rose 72 points or 1% whilst the S&P SL 20 Index gained by 35 points or 1%. Turnover was a healthy Rs. 2 billion whilst the only negativity was net foreign selling. “Whilst political worries over up-coming elections becoming intense, the Colombo Bourse closed in the green, with 171 counters ending positive against 44 negative contributors to the ASI,” Asia Securities said. “The Colombo Bourse started the election week on an optimistic note with notable returns and high market activity,” added Lanka Securities. “The market continued the positive sentiment, amid the uncertain election environment,” noted LOLC Securities. Asia said top contributory counters towards the day’s turnover were John Keells Holdings Rs. 372.3 m, Access Engineering Rs. 268.8 m, Seylan Bank (non-voting) Rs. 213.3 m, Union Bank Rs. 74.2 m and Sanasa Development Bank Rs. 69.4 m. It said the benchmark index gained patronised mainly by price gains on Commercial Bank of Ceylon, Access Engineering, Nestlé Lanka, Hemas Holdings, etc. Lanka Securities said several crossings were recorded in John Keells Holdings (0.6 m shares at Rs. 245 per share), Seylan Bank non-voting (0.5 m shares at Rs. 60 per share), Hatton National Bank (0.2 m shares at Rs. 195 per share) and National Development Bank (0.1 m shares at Rs. 255 per share). Total value of crossings accounted for 12% of the market turnover. “Gainers surpassed losers 193 to 42 while 32 counters remained unchanged. 10 counters reached 52-week high price levels while six counters touched 52-week low price levels. Cash map declined to 51% from 55%,” Lanka Securities said. Moreover, shares of Access Engineering, Union Bank and Textured Jersey were among heavily-traded counters. Additionally all the large cap banking sector counters such as Sampath Bank (closed at Rs. 241, +1.8%), Hatton National Bank (closed at Rs. 199, +2.1%) and DFCC Bank (closed at Rs. 223, +1.3%), Commercial Bank (closed at Rs. 180, +2.9%) and National Development Bank (closed at Rs. 253, +1.3%) advanced today. Foreign investors were net sellers for the second day with net outflow of Rs. 287 m. Foreign participation was 18%. Net foreign outflows were seen in counters such as John Keells Holdings (Rs. 317 m), Royal Ceramics (Rs. 33 m) and Sampath Bank (Rs. 17 m) while net foreign inflow was mainly seen in Sanasa Development Bank (Rs. 61 m). NDB Securities said high net worth and institutional investor participation was witnessed in John Keells Holdings, Seylan Bank nonvoting, Hatton National Bank and National Development Bank. Mixed interest was observed in Access Engineering, Union Bank and Sanasa Development Bank whilst retail interest was noted in Sierra Cables, PCH Holdings and Vallibel Power Erathna.

Rupee forwards end weaker on importer dollar demand

Reuters: Rupee forwards eased on Tuesday due to dollar demand from importers, while exporters stayed on the sidelines hoping for further weakening of the currency, dealers said. Four-day forwards, which were actively traded, ended at 132.45/50 per dollar compared with Friday’s close of 132.25/30, dealers said. Markets were closed on Monday for a special holiday. Dealers said one-week rupee forwards were also active after the Central Bank capped the four-day forwards at 132.40. The one-week forwards ended at 132.58/60. There is importer dollar demand and the weak rupee is a clear reflection of global currencies, a dealer said. Rupee forwards were maintained around 132 in December as the Central Bank defended the currency through moral suasion. The spot was not traded on Friday. Dealers said unusually high imports towards the end of 2014, amid lower interest rates and a stable exchange rate pressured the rupee. The spot currency remained between Rs. 130 and 131.75 throughout 2014, with the Central Bank defending it at both ends to ensure a stable exchange rate. It fell 0.3% for the year, Thomson Reuters data showed.