Bourse bounces back after Thursday’s dip

The Colombo bourse closed the week on a positive note with turnover clearing the billion rupee hurdle and both indices moving up tidily – the All Share by 80.95 points (1.61%) and the Milanka by 34.56 points (0.61%) on a turnover of Rs.1.1 billion, up from the previous day’s Rs. 859.33 million, with 112 gainers comfortably ahead of 51 losers.

"Things were a little positive although there was not much foreign participation," Asmath Iqbal of John Keells Stockbrokers said. "The sub division of shares and capitalization of reserves announced by Ceylon Investments and Ceylon Guardian Investments helped the market."

Yesterday’s biggest turnover generator was Dialog which continued to attract interest with over 6.6 million shares done between Rs.9.90 and Rs.10.10. The counter closed 10 cents up at Rs.10 generating Rs.66.4 million to business volume.

Hayleys was up Rs.7 to close at Rs.307 on 0.2 million shares done between Rs.298 and Rs.307 while Kelani Tyres gained Rs.8.40 to close at Rs.92.50 on nearly 0.7 million shares done between Rs.85 and Rs.92.50

Sampath Bank which has announced strong mid-year results gained Rs.2.50 to close at Rs.365.40 on over 0.1 million shares done between Rs.355.10 and Rs.370 while Renuka Holdings was up Rs.3.40 to close at Rs.42 on nearly 1.1 million shares done between Rs.37 and Rs.42.10.

Most shares that saw volume yesterday were gainers although Environment Resources Investments (ERI), a market moving speculative share, lost Rs.1.10 to close at Rs.96 on 0.4 million shares and one of its warrants (W0002) lost Rs.1.40 to close at Rs.49 on nearly 0.5 million traded.

JKH was a shade down on a thin volume of 55,500 shares losing 20 cents to close at Rs.250.10 trading between Rs.247.50 and Rs.245 while the Commercial Bank also lost 20 cents to close at Rs.194.50 on 71,200 shares done between Rs.192 and Rs.195.

Carsons Management Services announced that Ceylon Investments has recommended to shareholders that Rs.167.5 million from its revenue reserve of nearly Rs.2.2 billion be capitalized by issuing new shares after existing shares of the company are sub divided on a five for one ratio.

This would increase 19.3 million shares currently in issue to 96.6 million ordinary shares.

Similarly Ceylon Guardian Investment Trust will also sub divide its existing shares and capitalize reserves. The sub division would be five for one ordinary shares, increasing the shares in issue of nearly 16.1 million to nearly 80.5 million.

There will be no increase in the stated capital of both companies as a result of these measures, the announcement said.

source - www.island.lk