Tuesday, August 23, 2011

Bourse affected by global turmoil

Despite the boost given by the market regulator last week, reviving restrictions on the brokers providing credit to investors, Colombo bourse started off the week negatively, largely owning to the uncertainties prevailing in the global economies and capital markets.

According to Lanka Securities, “the market sentiments were weak during the day in line with overall global uncertainties”.

However, Bartleet Mallory Stockbrokers took a different stance in interpreting the market performance as they opined that selling pressure was seen today as investors cashed in on stocks that were accumulated following last weeks optimistic run.

All Share Price Index (ASI) closed 6,928.03, down 23.61 points (-0.34%) while sensitive Milank Price Index (MPI) settled at 6,292.35, down 42.06 points (-0.66%).

 HVA Foods Plc was the top contributor to the turnover with Rs.427.5million. The counters also traded heavily.   In addition, Laugfs Plc (Rs.194.8mn) and Citrus Leisure Plc (Rs.146.9million) made significant contributions.

 Meanwhile PC House Plc, Tess Agro Plc and Panasia Power Plc traded aggressively during the day.

Foreign participation accounted for 6% of the total market activity. At the end of the day,  foreign investors were the net buyers with a net foreign inflow of Rs.44.2mn. The market turnover reached Rs.2.3 billion.

Indian capital markets which were experiencing turbulences largely due to global economic uncertainties recovered yesterday, as both Sensex and Nifty landing on green.

However the Japans’ Nikkei stock average marked its lowest close since March 15 on Monday, as worries about the U.S. economy offset signs that the Japanese authorities stand ready to quell any further Yen strength. According to Reuters, the index fell as low as 8,619.21, breaking below the intraday low of 8,656.79 set on August 9, but holding above the March 15 closing low of 8,605 hit in the wake of the March 11 earthquake and tsunami.

Reuters also reported that Wall Street ended a fourth straight down week, with losses of more than 1 percent on Friday as most buyers left the market before the weekend.

“Growing fears of another U.S. recession and destabilization in Europe’s financial system weighed on investors’ minds” Reuters noted.Weak sentiments drag market down

The market sentiments were weak today in line with the overall global uncertainties. Besides, on certain counters such as PC House Plc, Multi Finance Plc notable levels of profit realizing were depicted.

 The market turnover reached Rs.2.3bn. ASI closed 6,928.03, down 23.61 points (-0.34%) while sensitive MPI settled at 6,292.35, down 42.06 points (-0.66%).

source - www.dailymirror.lk

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