But brokers and analysts did not attribute the market surge to expectations of greater political stability by the removal of the two-term limit on the presidency.
"We have been on a roll the whole of this year with the market up 96% year-to- date," an analyst said. ``In August there was a 10% gain and the market was up on most days in September."
The All Share Price Index was up 60.79 points (1.02%) while the Milanka gained 125.38 points (2.04%) on a turnover of Rs.4.19 billion, down from the previous day’s Rs.4.8 billion, with 92 gainers outpacing 77 decliners.
Brokers and analysts noted that the Milanka Price Index tracking the more liquid blue chips had been outpacing the broader All Share Price Index for a few days recently.
"Usually it is the other way around – especially during the current bull run," an analyst said.
Yesterday’s top business generator was JKH where over 2.3 million shares were done between Rs.275 and Rs.284.80 gaining Rs.5.60 to close at Rs.281 contributing Rs.644.2 million to turnover.
Other big contributors included NDB, Distilleries and Richard Pieris who announced a hefty 15 for 01 sub-division on Wednesday.
NDB was up Rs.5.10 to close at Rs.280 on nearly a million shares, Distilleries up Rs.9.90 to close at Rs.170 on over 1.2 million shares and Richard Pieris up Rs.14.30 to Rs.157.90 on nearly 1.2 million shares.
Falling interest rates are perceived to have diverted cash into the stock market where a lot of money has been chasing too few shares on offer in a relatively small market, analysts said.
Asmath Iqbal of John Keells Stock Brokers said there was considerable interest in banking stock yesterday with the NDB, Seylan Bank, HNB, DFCC, NTB and Commercial Bank attracting substantial trading.
JKH has been a heavily traded stock in recent days with the Sri Lanka Insurance Corporation (SLIC) believed to be selling down and with foreigners as well as high net worth and less affluent players on the bourse trading in the counter.
``The liquidity has been good for the market," Iqbal of JKSB said.
He attributed the interest in Distilleries to be partly due to the pending share split in Aitken Spence a company in which Distilleries increased its stake earlier this week.
Stocks that attracted retail focus yesterday included Bairaha Farms (up Rs.1.20 to Rs.165 on over 0.6 million shares), Grain Elevators (up Rs.1.10 to Rs.58 on over two million shares) and NTB (up Rs.2 to Rs.65 on over 1.5 million shares), he said.
Some analysts believed that the Amendment of the Constitution favors political stability although others believed that continuing with the two-term limit that prevails in countries like America strengthen democracy.
source - www.island.lk
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