Tuesday, November 9, 2010

Stock market at one-week low

Reuters: Sri Lanka’s benchmark share index faltered on Monday for a fourth straight session on low liquidity with a lot of cash locked up in Initial Public Offerings (IPOs) and tentative sentiment ahead of the 2011 Budget proposals.

Sri Lanka’s main share index edged down 18.26 points or 0.27 per cent to 6640.19. It is Asia’s best performer in 2010 with a 96.1 per cent gain. An estimated Rs. 60 billion ($ 538.1 million) was locked up awaiting oversubscription refunds from the Laugfs Gas and Hydro Power Free Lanka IPOs, which were oversubscribed by 15 and 57 times respectively, analysts said.

The bourse is trading at the highest forward price-to-earnings ratio in Asia and global emerging markets at 19.6 times, compared with 13.8 and 13 respectively, Thomson Reuters StarMine data showed. The CSE’s 14-day relative strength index is at 51.9, between the neutral limit of 30-70.
Local investors are still mainly bullish on September quarter earnings, with 75 listed firms so far showing an average growth of 225 percent year-on-year. Foreign investors have sold a net Rs. 25.9 billion this year, but on Monday bought a net Rs. 107.2 million worth of shares.

Turnover was Rs. 1.2 billion ($10.3 million), double the 2009 daily average of Rs. 593.6 million and less than half this year’s daily average of 2.5 billion.

The rupee closed firmer at 111.47/52 rupees a dollar, its highest since 16 December 2008 and up from the last close of 111.60/62, due to foreign bank dollar selling.

source - www.ft.lk

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