Market continues to hinder amidst policy uncertainties
was an overall bearish week for the Colombo Stock Exchange amidst
increased concern on capital gain tax coupled with the uncertainties of
The ASPI closed at 6287.09 down by 83.02 points or 1.30% compared to
the previous week whilst the S&P SL20 closed at 3302.51 down by 1.17%.
ASPI recorded a year to date loss of 8.45% as at weekly closure. The
turnover levels for the week increased by 8% and the aggregate weekly
turnover was LKR 2.71bn. Chevron Lubricants Lanka PLC was the top
contributor to the weekly turnover, recording LKR 936.9Mn, supported by
a off market deal worth of LKR 441.2Mn crossed at LKR 149.00- 150.00.
The foreigners appeared to be bearish during the week amidst the
uncertainty on external front recording a net foreign outflow of LKR
221Mn. Foreign interest was mainly seen on Textured Jersey Lanka PLC (TJL).
TJL closed the week at LKR 35.70, unchanged during the week.
The year to date net foreign outflow stands at Rs. 6.1Bn.
The top 3 positive contributors to the ASPI during the week were
Ceylon Cold Stores PLC (Rs. 554.20, +3.76%), Nestle Lanka PLC (Rs.2400,
+ 0.84%), Asiri Hospital Holdings PLC (Rs.27.10, +3.04%). Further, the
top 3 negative contributors to the ASPI were Ceylon Tobacco Company PLC
(Rs. 1050.00, -4.45%) Bukit Darah PLC (Rs.298.30, -14.75%), C T Holdings
PLC (Rs. 118.20, -9.08%). Further John Keells Holdings PLC's trading
recommenced on Thursday after its 3 days trading suspension due to its 7
to 8 share subdivision while closing the week at LKR 135.00
Further, from a Technical perspective the ASPI indicates an oversold
view where the daily RSI stands at 20.9. Currently, the ASPI is below
its 200 day Simple Moving Average level at 6631. The key Support levels
are 6282 and 6108, whereas the key resistant levels stand at 6360 and
The key event which influenced the market sentiment during the week
was mainly the publication of inflation data by the Department of Census
& Statistics. Sri Lanka inflation has surged to 6% (YoY) in June up from
4.8% in previous month, highest since October 2013. The inflation of
food commodities primarily contributed for the month's inflation,
recording an 8.2% (YoY) growth.
However on YOY basis core inflation slightly dropped at 6.4% from
6.6%. Going forward we expect the head-line inflation to increase
further amidst the government fiscal tightening. Further the Central
Bank Governor, Arjuna Mahendran informed the monetary board recently
that he would not seek reappointment as governor of Central Bank of Sri
Lanka when his term finishes on 30th June 2016