Tag Archives: senior research analyst

Sri Lanka shares end near 9-mth low; foreign selling in Keells weighs

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FIRST CAPITAL’S SENIOR RESEARCH ANALYST, ATCHUTHAN SRIRANGAN, SPEAKS TO REUTERS.

Sri Lankan shares fell for a fourth straight session on Wednesday, to end at a near nine-month low, as investors sold large-cap shares on fears that continued foreign selling in John Keells Holdings could dampen market sentiment further.

Foreign investors sold a net 745 million rupees ($4.98 million) worth of equities on Wednesday, the highest in a day since Sept 22, 2016, extending the net outflow in the first three trading sessions of the year to 815 million rupees.   Worries over a weakening rupee and rising interest rates also weighed on the sentiment.

Investors still don’t have the confidence to buy the shares, said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Amid interest rate volatility and policy uncertainties, they are not willing to buy for long term. They will wait to see the long-term picture.

The Colombo stock index ended 0.1 percent down at 6,153.13, its lowest close since April 4. The bourse fell 9.7 percent in 2016, its second straight annual decline.

The index dipped into the oversold territory further on Wednesday with the 14-day relative strength index extending its fall to 28.569 points versus Tuesday’s 29.238, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.

Conglomerate John Keells Holdings Plc, which saw net foreign selling of 5.22 million shares that accounted for 82 percent of the day’s turnover, however ended 1.2 percent higher on the back of bargain hunting by domestic investors.

Talks of a high net worth foreign investor exiting from Keells has triggered panic selling, dealers said.  Yields on treasury bill auctions rose 5-6 basis points at a weekly auction on Wednesday.

Sri Lanka’s central bank governor on Tuesday signalled less intervention to defend the currency and the market has braced for a depreciation in the currency.

The country’s failure to attract foreign direct investment and a lack of investor confidence due to a reversal in some 2016 budget policies weighed on the market and on the rupee, stockbrokers said. The currency lost 3.9 percent in 2016 and continues weaken.

Turnover stood at 958.3 million rupees ($6.41 million).  Shares in Ceylinco Insurance Plc dropped 18.1 percent while large cap Ceylon Tobacco Company Plc lost 1.6 percent.

($1 = 149.5000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

 

 

Sri Lankan shares rise nearly 0.5 pct in high turnover

FIRST CAPITAL’S SENIOR RESEARCH ANALYST, ATCHUTHAN SRIRANGAN, SPEAKS TO REUTERS.

Sri Lankan shares closed about half a percent higher on Wednesday, recovering from a more than eight-month closing low hit in the previous session, led by blue chips such as John Keells Holdings and Hatton National Bank.

Turnover was 1.73 billion rupees ($11.59 million), more than twice the daily average of 739.5 million rupees for this year. Commercial Bank of Ceylon and Sunshine Holdings accounted for 48.3 percent and 44 percent of the turnover, respectively.

The Colombo stock index finished 0.41 percent higher at 6,228.51, bouncing back from its lowest close since April 6 hit in the prior session. It shed around 2.1 percent in the 10 sessions through Tuesday.

“Blue chips lifted the market. I think it was mostly due to window dressing ahead of the year-end,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Foreign investors bought a net 16.2 million rupees worth shares on Wednesday, extending the year-to-date net foreign inflows to 627.5 million rupees in equities.

Top conglomerate John Keells rose 1.1 percent, while Hatton National Bank gained 2.65 percent. Commercial Bank of Ceylon closed 2.1 percent higher, while Sunshine ended flat.

($1 = 149.3000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

 

Sri Lankan shares rise after eight sessions of falls in thin trade

FIRST CAPITAL’S SENIOR RESEARCH ANALYST, ATCHUTHAN SRIRANGAN, SPEAKS TO REUTERS.

Sri Lankan shares edged up on Friday, snapping eight straight sessions of falls and moving away from a more than eight-month closing low hit in the previous session, while turnover was low in holiday-thinned trade as investors stayed away from markets ahead of the Christmas weekend.

The Colombo stock index ended 0.11 percent firmer at 6,216.56 after posting its lowest close since April 6 in the previous session. It shed 2 percent in the eight sessions through Thursday, and declined 0.8 percent this week.

Turnover was near a four-week low at 124.9 million rupees ($835,451.51), around a sixth of this year’s daily average of 738 million rupees.

“We may see some window dressings next week, which might help the index move up,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Sri Lankan markets will be closed on Monday for a bank holiday in lieu of Christmas on Sunday.   Foreign investors, who have been net buyers of 621.5 million rupees of equities, sold a net 4.2 million rupees of shares on Friday.

Cargills (Ceylon) Plc and top conglomerate John Keells Holdings Plc accounted for 59 percent of the day’s turnover.  Cargills shares gained 2.9 percent, while Hatton National Bank Plc rose 1.1 percent to boost the overall index. John Keells, however, fell 0.14 percent.

($1 = 149.5000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)