Wednesday, May 25, 2011

Bourse ends on mixed note

The Colombo stock market yesterday ended on a mixed note though overall activity levels were encouraging with focus continuing to be on Colombo Land and few other speculative stocks whilst blue chips gathered strength.

The benchmark ASI was down 7 points but Milanka Index was up 4 points. Turnover was a healthy Rs. 2.5 billion. Foreigners remained net sellers with yesterday’s figure being Rs. 140.7 million.

“Local retail selling pressure resulted in the ASPI remaining stagnant while retail play on CLND continued to boost activity levels,” John Keells Stock Brokers said.

“The indices started to gain during early trading and dropped gradually to close on a mixed note. MPI closed in green with the price appreciation of John Keells Holdings and Hemas Holdings,” NDB Stockbrokers said.

The Bank, Finance & Insurance sector was the main contributor to the market turnover (due to Central Finance & Nation Lanka Finance), while the sector index decreased by 0.03%.

The Land & Property sector also contributed significantly to the market turnover with the sector index gaining 4.04%. Colombo Land continued to be the main contributor to the market turnover. The share price increased by Rs. 3.10 (9.75%) and closed at Rs. 34.90.

NDB also said Central Finance, Colombo Land and Nation Lanka Finance continued to record rapid gains while price drops in illiquid stocks weighed on the ASPI mostly.

Reuters reported that stock market edged down on Tuesday as retail investors booked profits and sold stakes ahead of Sri Lanka’s largest initial public offering since 2005, while the rupee closed weaker.

Sri Lanka’s main share index closed 0.1 percent or 7.18 points weaker at 7,431.97, its lowest close since 16 May.

Land shares led by a 9.75 jump in Colombo Land and Development helped to slow overall fall, mainly led by bank and motor shares.

The day’s turnover was Rs. 2.52 billion ($22.95 million), more than last year’s average of 2.4 billion, but less than this year’s daily average of 2.81 billion.

Analysts attributed lower turnover to investors locking funds into conglomerate ExpoLanka’s IPO, which was oversubscribed by 450 percent.

Foreign investors were net sellers for 140.7 million rupees’ worth of shares on Tuesday. They have sold a net 6.3 billion rupees worth shares in 2011 after a record 26.4 billion in 2010.

Traded volume was 115.5 million, against a five-day average of 125.4 million. The 30-day and 90-day average trading volumes were 67.5 million and 97.5 million respectively. Last year’s daily average was 67.9 million.

The bourse is still Asia’s best performer in 2011 with a 12 percent gain, after bringing in the region’s top return of 96 percent last year.

The rupee closed weaker at 109.95/110.00 a dollar from Monday’s 109.88/90 as the Central Bank widened the dollar trading band by 10 cents to 109.50/110.00 from 109.50/90 amid slight importer demand for greenbacks, dealers said.

source - www.ft.lk

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