Those highs were not maintained at close but both indices had gained sharply – the All Share 177.84 points (2.84%) and the Milanka 170.37 points (2.50%) on a turnover of Rs.4.9 billion, up from the previous day’s Rs.2 billion. The SEC, considering representations made by the Colombo Stock Brokers Association and some market participants, at a meeting last Thursday had decided that while its direction governing brokers’ credit to clients stood, the deadlines were pushed back.
Under the new deadline, the current debtors’ positions must be reduced at least 50% by March 31, 2011 and at least 100% by June 30, 2011, the SEC ruled.
This was against the previous directive that these positions must be liquidated by the end of this year which resulted in many brokers pushing clients owing them money to sell down their portfolios resulting in a rapid decline in the market.
The SEC said that its new directive had been made with a view to granting smalltime investors additional time to clear their outstanding positions.
"The indices bounced back recording a sharp gain on renewed buying evident across the board that stimulated activity levels," John Keells Stock Brokers said in a market report.
The major trade yesterday was Seylan Bank where nearly 10% of the company changed hands with 12.4 million shares sold at a price of Rs.100 per share.
Market speculation was that either Browns or LOLC was the seller as both companies held the quantity of shares that was sold. But they were unsure whether this was a transfer between related parties. There was no buyer/seller confirmation at the time of this report was written.
A total of nearly 12.6 million Seylan was traded yesterday between Rs.92 and Rs.98.50 gaining Rs.6.40 to close at Rs.95.30. However, the big parcel was crossed at Rs.100.
The other big trades were Asiri (slightly over 90 million shares), Cargills (slightly over 3 million shares) and JKH (nearly 0.9 million shares).
Asiri saw two crossings of 90 million shares at a price of Rs.9 while Cargills saw 3 million shares crossed at Rs.195 and JKH over 0.5 million shares crossed at prices of Rs.301 and Rs.299, brokers said.
Asiri traded between Rs.8.60 and Rs.9.10 gaining 50 cents to close at Rs.9.00, Cargills was done between Rs.193 and Rs.202.50 gaining Rs.2.50 to close at Rs.196 while JKH was up Rs.6.20 to Rs.298 trading between Rs.295 and Rs.300.
Other counters that showed volume included Central Finance, up Rs.7.80 to Rs.720 on over 0.1 million shares and Seylan Merchant Bank, up 20 cents to Rs.1.70 on nearly 56 million shares.
Brokers said that banking stock were gainers yesterday with Sampath up Rs.11.90 to Rs.260.50 on over 0.3 million shares, NDB up Rs.7.50 to Rs.350 on nearly 0.2million shares and DFCC up Rs.3.20 to Rs.200 on nearly 0.2 million shares.
Ceylon Theatres was a big gainer – up Rs.12.70 to Rs.190 on nearly 0.2 million shares.
Richard Pieris announced a dividend of cents 20 per share for 2010/11, XD from Dec. 8 and payment on Dec. 16.
MTD Walkers announced a rights issue of 19 shares for each share held at Rs. 33 per share. The counter will trade XR from Dec. 13 with provisional letters of allotment sent out on Dec. 17.
source - www.island.lk
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