Bourse recovers after Budget vote, but investors cautious

Reuters: Stocks recovered on Tuesday from the previous session’s near-four-week closing low, a day after President Mahinda Rajapaksa won the final 2015 Budget vote, contrary to speculation that he might lose it.

Analysts expect the market to be volatile due to political uncertainty before a snap presidential poll on 8 January. Rajapaksa, who is facing a split in his ruling coalition ahead of the poll, won the final vote on the 2015 Budget with a strong majority.

The main stock index, which rose 1.32% intra-day, ended 0.06% up at 7,239.36, recovering from its lowest close since 28 October, hit on Monday.
Stockbrokers said the market was volatile and late selling saw early gains being surrendered as investors were cautious due to the prevailing political uncertainty ahead of the elections.

Already, seven legislators, including Health Minister Mithripala Sirisena, the main Opposition candidate, have defected from Rajapaksa’s ruling coalition.
Stockbrokers and research analysts said some investors are buying stocks quietly. They said fears of a possible change in the political leadership could be highly volatile to the market, while some investors still remain optimistic about the change.

Continued foreign buying, low interest rates and hopes of better earnings pushed the bourse into the overbought zone by 18 November, before it slipped on political woes. The Bourse is in the oversold region since Friday, Thomson Reuters data showed.

Tuesday’s turnover was Rs. 1.08 billion ($ 8.24 million), exchange data showed, less than this year’s daily average of Rs. 1.44 billion. Foreign investors were net buyers of Rs. 5.2 million, extending foreign buying for this year to Rs. 19.4 billion, exchange data showed.
Shares in Hatton National Bank Plc rose 1.55%, leading the overall gain.

http://www.ft.lk/2014/11/26/bourse-recovers-after-budget-vote-but-investors-cautious/

Nov 25, 2014 (LBO) - Sri Lanka's stocks closed 0.06 percent higher with the price gains of Nestle Lanka and C T Holdings, brokers said.

The Colombo benchmark All Share Price Index closed 4.11 points higher at 7,239.36, up 0.06 percent.
The S&P SL20 closed 0.78 points higher at 4,045.72, up 0.02 percent.

Turnover was 1.08 billion rupees, down from 1.70 billion rupees a day earlier with 118 stocks closed positive against 73 negative.

The aggregate value of all off-the-floor deals only represented 7 percent of the daily turnover.

Access Engineering closed 70 cents higher at 38.00 rupees and People’s Leasing & Finance closed 10 cents higher at 23.00 rupees, attracting most number of trades during the day.

Foreign investors bought 262.20 million rupees worth shares while selling 256.99 million rupees worth shares.

Nestle Lanka closed 46.50 rupees higher at 2,157.50 rupees and C T Holdings closed 8.90 rupees higher at 149.00 rupees, contributing most to the index gain.
Ceylon Tobacco Company closed 19.30 rupees lower at 1,076.20 rupees and John Keells Holdings closed 2.90 rupees lower at 244.60 rupees.

Sri Lanka Telecom closed 1.00 rupee lower at 48.20 rupees.

http://www.lankabusinessonline.com/news/sri-lanka-stocks-close-higher/1660715114

First Guy wrote:Reuters:
Continued foreign buying, low interest rates and hopes of better earnings pushed the bourse into the overbought zone by 18 November, before it slipped on political woes. The Bourse is in the oversold region since Friday, Thomson Reuters data showed.

http://www.ft.lk/2014/11/26/bourse-recovers-after-budget-vote-but-investors-cautious/

Thanks 1st G for sharing.
OVERSOLD since FriDay.