CSE Diary for 24.04.2012
Indices showed some volatility during the day’s trading moving between gains and losses on thin volumes indicating lack of direction amidst economic uncertainties. Both indices gradually settled in the red for the third consecutive day amidst discouraging activity levels. Despite the prevalent short term economic concerns, foreigners have continued to remain positive on the Lankan equity recording a net foreign inflow for the fifth consecutive day today, taking the YTD net buying to LKR21.4 bn. We believe the local investors should also take the initiative by continuing to accumulate steady counters on weakness whilst not being blinded by the short term developments.
Albeit on thin volumes, interest persisted in heavyweight, John Keells Holdings, as the counter contributed circa 20.7% to the day’s turnover. A number of large trades on the counter were dealt on board as it closed flat at LKR206.0. Buying interest continued in both the Voting and Non – Voting shares of Commercial Bank of Ceylon as the counters also registered few large transactions being taken on board. Another banking sector favourite, Sampath Bank also extended interest as the counter closed marginally in the green at LKR179.2. Some selling pressure emerged in Nations Trust Bank with the announcement by its major shareholders, John Keells Holdings (29.9% stake) & Central Finance (20% stake), on their request to the CBSL to extend the deadline (23.04.2012) for reducing their shareholding in the counter to 15% or below as per the regulatory requirement. The CBSL response is yet to be announced.
Meanwhile, CIC Holdings secured interest with several large trades being taken on board, where the counter closed flat at LKR100.0. Similar interest was observed in Overseas Realty advancing by 3.7% to close at LKR14.0. Retail speculative play continued in Environment Resources Investment, Colombo Fort Land & Building, Amana Takaful & Swarnamahal Financial Services.
European stocks rebounded from a three-month low: European stocks rebounded from a three-month low before reports on American consumer confidence and home sales. Benchmark Stoxx Europe 600 Index gained 0.6% to 253.23 at 11:25 a.m. in London.
Oil traded near the lowest closing level in two days: Oil traded near the lowest closing level in two days in New York before data that may show inventories rose to an 11-month high in the US. Oil for June delivery was at $103.12 a barrel in electronic trading, 1% higher at 12:27 p.m. London time on the New York Mercantile Exchange.