Friday, May 3, 2013

Bourse resumes upward trajectory

The Colombo bourse resumed its upward trajectory yesterday with the All Share Price Index now on the verge of breaking through the 6,000 point resistance level, brokers said.

"With the index at 5,972.37 points, less than 28 points to go, and if the top blue chips keep moving up as they did today, we should see the 6,000 point breached either on Friday or early next week," a broker said.

Both indices closed up with the ASPI gaining 19.18 points (0.32%) and S&P SL20 16.98 points (0.5%) on a turnover of Rs.637.8 million, down from the previous day’s Rs.876.3 million, with 114 gainers comfortably ahead of 68 losers while 105 counters closed flat.

Both JKH and Commercial Bank, two of the most widely sought blue chips, broke through their resistance barriers yesterday with JKH clearing the Rs.250 mark and ComBank closing at Rs.115.

There were no crossings yesterday with Touchwood, a stock attracting massive retail play, generating the day’s top turnover of Rs.123.2 million on 19.8 million shares traded between a low of Rs.5.50 and a high of Rs.7.50. The counter closed Rs.1.30 down at Rs.5.70.

The next biggest turnover generator was JKH which closed at Rs.250.10 on nearly 0.2 million shares done between Rs.249.60 and Rs.250.10 contributing Rs.99.3 million to turnover.

LIOC showing profit after a long time attracted active retail play closing Rs.3.50 up at Rs.27.70 on over 1.4 million shares done between Rs.25 and Rs.28, the one-year high for this counter.

"The company is showing an earning of Rs.4 per share," a broker said. "But of course it is in a volatile business sector."

ComBank was 20 cents up to close at Rs.115 on nearly 0.2 million shares done between Rs.114 and Rs.115 contributing Rs.21 million to turnover while NDB was up a rupee to Rs.170 on over 0.1 million shares.

HNB was a third banking share that gained Rs.2.20 to close at Rs.165 on nearly 0.1 million shares while Sampath closed flat at Rs.216 on 56,046 shares.

Retail activity was seen in Colombo Land, LIOC and Touchwood among other counters while foreign and high local net worth interest in the blue chips continued to be evident.

Brokers said that if the 6,000 point barrier is breached the market should look up in the context of lower interest rates widely projected.

Sanasa Development Bank announced a first and final dividend of Rs.5 per share for 2012 after shareholder approval at an AGM on May 31. The share will trade XD from June 3 while payment will be on June 11.

The Colombo Pharmaceutical Company said in a Stock Exchange filing that its directors have decided to discontinue its pharmaceutical operations which had been making continuous losses. A special resolution seeking shareholder concurrence for this measure will be presented at a general meeting to be called in the near future.

The company which has valuable real estate holdings will continue with its business of property development.

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