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Thursday, September 15, 2011

Market reacts to SEC cracking credit whip

A Securities and Exchange Commission edict that all stockbrokers must conform to the credit guidelines it has issued with violators required to fall in line by today (Thursday) pushed the market down yesterday with turnover down to Rs. 1.63 billion from the previous day’s Rs. 3.07 billion and both indices down – the All Share by 34.43 points (0.50%) and the Milanka by 42.76 points (0.68%) with 53 gainers trailing 144 losers.

Brokers said that considerable stress had been caused by the SEC’s tough line and the Colombo Stock Brokers Association was meeting at an emergency session last evening to consider warning letters issued to several members and the overall situation.

JKH was the major business generator yesterday nearly 0.9 million shares traded between Rs. 217.50 and Rs. 219.80 closing 60 cents up at Rs. 218 generating the top turnover of Rs. 186.2 million.

``There were no crossings with most of the trades done at a price of Rs. 219,’’ brokers said. They noted that the price had moved up from the Rs. 215 level at which Distilleries and connected parties were buying into the conglomerate.

Distilleries saw 350,000 shares crossed in two parcels at a price of Rs. 175 while Nawaloka saw 10 million shares crossed at Rs. 4.

Retail play was evident in Blue Diamonds, both voting and non-voting, with the voting share closing flat at Rs. 11.80 with 8.3 million shares traded between

Rs. 10.30 and Rs. 11.80. The non-voting share closed 10 cents up at Rs. 5.30 with 16.3 million shares done between Rs. 4.70 and Rs. 5.30.

Tess Agro was another retail play gaining 50 cents to close at Rs. 5.80 on 15.5 million shares traded between Rs. 5.50 and Rs. 5.80; so also Colombo Land, up 40 cents to Rs. 62.50 with nearly a million shares done between Rs. 61.90 and Rs.64.80.

Some the pricey counters that showed sharp price movement and quantity included Ceylon Guardian up Rs. 25.50 to Rs. 350 on 77,900 shares while Colonials dipped Rs. 12.70 to Rs. 460 on 54,200 shares.

Blue Diamonds Jewellery Worldwide announced that Mr. Godfrey de Kretser, Executive Director, has been appointed Deputy Chairman and will be titled Deputy Chairman/Executive Director.

Alliance Finance announced the capitalization of reserves subject to CSE and shareholder approval with 800,000 new shares to be issued with Rs. 8 million of its reserves capitalized at Rs. 10 a share.

source - www.island.lk