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Thursday, February 3, 2011

Retailers punting on second tier stock keep market moving

The Colombo bourse continued its upward surge yesterday with retailers punting on speculative stocks driving the market, brokers said.

Turnover topped Rs.4.1 billion, up from the previous day’s Rs.3.2 billion, with both indices moving up tidily – the All Share by 71.49 points (0.99%) and the Milanka by 29.65 points (0.22%) with 101 gainers running ahead of 83 losers.

The big turnover generators were Three Acre Farms, Grain Elevators, Colombo Fort Land and Buildings, Lion, CIC (non-voting) and Lanka Walltiles.

All except Lanka Walltiles posted hefty price gains ranging from a low of Rs.15.70 (Lion) to a high of Rs.43.20 (CFLB) on substantial share volumes.

"The market was driven solely by retailers," a broker said. "Some of the valuations did not support the price levels achieved but traders playing on speculative stock are making money."

Three Acre Farms was the day’s biggest turnover generator with nearly 1.6 million shares done between Rs.186 and Rs.224 gaining Rs.34.70 to close at Rs.219 contributing Rs.321.2 million to the day’s business volume.

Grain Elevators, parent of Three Acres, followed gaining Rs.30.20 to close at Rs.441 on over 1.1 million shares done between Rs.217 and Rs.245. Analysts noted that these two poultry companies were on the trail blazed by Bairaha Farms whose share topped Rs. 400.

Colombo Fort Land and Buildings was up Rs.43.20 to close at Rs.435.50 on nearly 0.6 million shares done between Rs.410 and Rs.448 while Lion gained Rs.15.70 to close at Rs.211 with a million shares done between Rs.195 and Rs.214.

Analysts said that the Colombo Fort Land and Buildings/E.B Creasy group shares have been doing well with E.B. Creasy up a Rs.100 to Rs.2,500 on a small quantity of 600 shares, CFLB gaining Rs.43.20, Colonial Motors up Rs.42 to close at Rs.340 on 73,100 shares, Lankem up Rs.38.30 to close at Rs.412 on nearly 0.3 million shares and Colombo Fort Investments up Rs.24.40 to close at Rs.350 on13,200 shares.

The HDFC Bank announced a final dividend of Rs.5 per share for 2010 with dates to be notified.

Softlogic Holdings said that approximately 94 million shares comprising 10.57% for its mandatory offer for Asiri Hospital Holdings had been accepted. Prior to the offer Softlogic held 12.42% of Asiri Hospital Holdings.

source - www.island.lk