Navara Daily Market Insights 28 May 2015

Colombo Stock Exchange main indicator, All Share Price Index closed 2.21
points higher at 7,255.71, 0.03% up while more sensitive S&PSL20 closed 4.18 points higher at 4,035.04, 0.10% up.

Market turnover was Rs.1,383mn with ten crossing transactions took place on five companies. Significant foreign selling on Commercial Bank of Ceylon PLC was witnessed with nearly 2.15mn shares executed at Rs.165.00- Rs.164.00 per share range.

Moreover, overall market lacks bullish momentum with political uncertainty and upcoming generation election weighted on investor sentiment. Foreign investors continue to be net sellers for the third consecutive day with disposing nearly Rs.451mn worth of shares reducing year to date net inflow to Rs.4.63bn.

Aggregate value of all the crossings transactions amounted to Rs.537mn amounting to 39% of the daily turnover. Foreigners were also disposing Union Bank PLC shares worth of Rs.81mn at Rs.24.80 per share.

Hatton National Bank of Ceylon PLC quantity worth of Rs.46mn changed hands at Rs.229.30 per share. Foreign stake of Hatton National Bank PLC improved by 253,000 at the end of the day.

A quantity worth of Rs.45.8mn of John Keells Holdings PLC changed hands at Rs.201.00 per share while Sampath Bank quantity worth Rs.27mn changed hands at Rs.270.00 per share. Retail interest was evident on Sinhaputhra Finance PLC Preference share and Alufab PLC recording highest number of trades of 697 and 264 respectively.

Central Bank of Sri Lanka successfully launched and priced a USD 650mn 10 year international bond issue at 6.125% per annum on 28th May 2015. On the same day CBSL successfully issued USD329mn Sri Lanka Development Bonds of 1 year and 1 month maturity at a weighted Average margin (WAM) of 316.69 bps and USD 9mn SLDBs of 2 year 11 months maturity at a WAM of 353.86 bps, over 6 month LIBOR.

Accordingly a total of USD 988mn was raised via International Sovereign bonds and SLDBs at a weighted average cost of 5.261% per