Thursday, May 26, 2011

Bourse rebounds, property sector hot

■ Investors toast Commercial Bank Rs. 9.7 b Rights Move; Central Finance bull run persists

■ Land and Property Sector Price index up 14% so far this week

The Colombo stock market bounced back yesterday supported by improved investor sentiments especially on land and property sector as well as second tier counters along with select blue chips.

The benchmark ASI gained over 14 points whilst Milanka rose by over 20 points. Turnover was an above average Rs. 3.9 billion. "Heavy interest in predominantly second tier counters from local retailers pushed the indices slightly higher despite selling pressure," John Keells Stock Brokers said.

Other analysts said Land and Property Sector stocks continued to be hot in demand though activity on speculative and fundamental buying on new star Colombo Land persisted.

Overall the Land and Property sector price index has risen by 74 points or 14% so far this week. Yesterday it gained by 3% just below the best performer IT which grew by 3.28%

The Land and Property sector also accounted for the second highest turnover of Rs. 1 billion with 35 million shares changing hands via 9,027 trades. Colombo Land saw nearly 14 million of its shares traded including a crossing of 4 million before closing at Rs, 38.30, up by Rs. 3.40. On Friday it closed at Rs. 20.10 after a 20% stake bought by Emagewise/Citrus Leisure Group.

The banking, finance and insurance sector yesterday produced the highest turnover of Rs. 1.17 billion on a volume of 128.7 million shares. Investors toasted Rs. 9.7 billion worth Rights Issue of Commercial Bank with its voting share up Rs. 4.70 to Rs. 263 and non-voting up Rs. 5.70 to Rs. 192.80. HNB which didn’t gained soon after it announced Rs. 14.3 billion Rights, saw better fortunes yesterday with its voting share up Rs. 3.70 to Rs. 229.50.

Central Finance also shot up on impressive results as well as on speculation up by Rs. 97.10 to Rs. 1,850.90 whilst it hit an intra-day high of Rs. 1,895 on a volume of 167,400 shares.

Despite Bourse producing a net non-national outflow of Rs. 28.2 million, an asset management arm of a US investment bank collected available JKH shares from the market. JKH hit a high of Rs. 301 before closing at Rs. 300.10, up by 40 cents.

Reuters said stock market rose on Wednesday from its one-week closing low, led by bank and telecom shares with strong turnover and volume, while the rupee currency edged down on import dollar demand.
Sri Lanka's main share index closed 0.2 percent or 14.72 points firmer at 7,446.69, snapping a three straight losses.

Central Finance, a leasing firm which on Tuesday posted a 63.2 percent rise in its group net profit for the year ended on March 31, gained 5.5 percent.

Top private lender Commercial Bank of Ceylon rose 1.6 percent, a day after it announced plans to raise 9.7 billion rupees ($88.2 million) through a rights issue to fund future expansion and share split.
The day's turnover hit a three-week high of 3.91 billion Sri Lanka rupees ($35.5 million), more than last year's average of 2.4 billion and this year's daily average of 2.82 billion.

Foreign investors were net sellers for 28.3 million rupees' worth of shares on Wednesday. They have sold a net 6.3 billion rupees worth shares in 2011 after a record 26.4 billion in 2010.

Traded volume was 220.1 million, its highest since Jan. 16, against a five-day average of 149.9 million. The 30-day and 90-day average trading volumes were 73.3 million and 99.4 million respectively. Last year's daily average was 67.9 million.

The bourse is still Asia's best performer in 2011 with a 12.2 percent gain, after bringing in the region's top return of 96 percent last year.

The rupee narrowly shaved to close at 109.97/110.00 a dollar from Tuesday's 109.95/110.00 on importer dollar demand, dealers said.

Day of Schaffters?

In many ways yesterday appeared to be the day of Schaffters with several companies related to the entrepreneurial family figuring in the percentagewise top 10 gainers.

Dunamis Capital which reported a whopping 523% increase in profits to Rs. 811 million FY2011, topped the list with 61% gain or Rs. 8.60 to close at Rs. 22.70 whilst the share peaked to a high of Rs. 24.

Nearly 15 million of Dunamis shares traded for Rs. 296 million. Kelsey Homes figured at number three up 23% or Rs. 4 to close at Rs. 21 whilst First Capital was fifth with a gain of 19% or Rs. 4.30 to Rs. 26.90. Completing the list was Janashakthi Insurance up 18.4% or Rs. 2.80 to Rs. 18.

source - www.ft.lk

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