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Friday, April 8, 2011

Stock market gets lift; net foreign inflow tops Rs. 1 b in five days

The Colombo stock market yesterday got a welcome but unconvincing lift renewing hopes of investors.

The All Share Price Index gained by 0.26% and Milanka by 0.18%. Though marginal gain, it was a relief as the Bourse has been bearish this week. Turnover was below par at Rs. 1.6 billion whilst foreigners remained net buyers and the cumulative five day-figure topped Rs. 1 billion mark

“The indices ended marginally higher on modest buying on selected counters amid moderate activity levels,” John Keells Stock Brokers said.

“Indices gained marginally amidst low turnover levels. Institutional and high networth investor participation was witnessed today to a certain extent. MPI was stagnant during the day and picked up towards the end due to appreciation of JKH,” NDB Stockbrokers said.

“Decreased volatility and steady interest on certain fundamentally strong stocks is an encouraging sign,” it added.

Bank, Finance & Insurance sector was the main contributor to the market turnover (mainly due to Central Finance) with the sector index decreasing 0.08%. Diversified sector also contributed to the market turnover (due to John Keells Holdings) with the sector index increasing 0.04%. The share price of John Keells Holding gained Rs 1.40 (0.51%) and closed at Rs 298.

Tokyo Cement (Non-voting) was the main contributor to the market turnover with a crossing of 1,150,000 shares at Rs 48.50. The share price increased by Rs 2.50 (5.39%) and closed at Rs 49.30. The share price of Tokyo Cement (Voting) increased by Rs 1.40 (2.12%) and closed at Rs 67.50. Trading sector was on the up with renewed interest shown in Brown & Company. The share price increased by Rs 16.50 (7.89%) and closed at Rs 313.

Reuters said stock market edged up in thin volume and retail buying, ending three straight losses, as investors stayed on the sideline ahead of a long new year holiday next week

Foreign investors were net buyers of shares worth 18.3 million rupees on Thursday, extending the total inflow to 1.14 billion rupees in the last five sessions. But they have sold a net 6.7 billion in 2011, and a record 26.4 billion in 2010.

The bourse is still Asia’s best performer in 2011 with an 11.2 percent gain, after bringing in the region’s top return, 96 percent, last year.

Traded volume was 50.7 million, against a five-day average of 55.5 million shares. The 30-day and 90-day average trading volumes were 63.4 million and 68 million, respectively. Last year’s daily average volume was 67.9 million.

The bourse is trading at a forward price-to-earnings (P/E)ratio of 15.4, one of the highest among emerging markets, compared with an average 12.6 in Asian markets and 11.9 for global emerging markets, Thomson Reuters StarMine data showed.

The Stock Exchange declared April 15 a special holiday to mark the traditional New Year which falls on April 13 and 14.

The rupee meanwhile closed firmer at 110.34/37 a dollar from Wednesday’s close of 110.38/40 as exporters converted dollars to pay the bonuses ahead of the festivals, dealers said.

source - www.ft.lk