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Tuesday, June 14, 2011

Mid day market in the red, Expolanka debuts on the bourse

LBR: Trading at the Colombo bourse is on negative territory by mid day, Monday.

Expolanka Holdings debuted on the market today. The share started trading at 15.00 rupees but slid to 14.30, lowest for the day so far and is currently moving at 14.60 rupees levels.

"The momentum did not sustain as there was some selling pressure on EXPO," said Sahani De Silva at Bartleet Stockbrokers.

One crossing took place on the counter as 1.5 million shares changed hands at 14.30 rupees a share. Peoples Merchant bank also saw two million shares cross at 31.00 rupees a share.

The market is mainly driven by retail investors active on mid cap counters. Brokers say cash is being drained out of the market ahead of the Vallibel One IPO.

"The market may remain stagnant until the Vallibel IPO. We expect some movement in the Vallibel group stocks," said Udith Wickramasinghe at Lanka Securities Limited.

Royal Ceramic, a subsidiary of Vallibe One stock is up 10.50 rupees at 167.00 rupees on the back of good results posted by the firm.

A research report by Lanka Securities Limited cites the stock as undervalued, trading with a Price to Earning Ratio of 11.88X against the sector PE of 16.42X. Analysts say fundamental value should be at 195.00 rupees and are hoping for a upward movement in the near future.

Diamond exporter, Blue Diamonds witnessed some activity today with the share touching a high of 8.00 during morning trade. The stock is now moving at 7.50 rupees levels with speculated buying in to the firm, market sources said. Investor interest is also seen on mini hydro firm Panasian Power. The counter started trading at 7.00 rupees, slid to 6.40 rupees and now moving at 6.70 rupees levels.

Share price of People’s Merchant Bank, in which businessman Dilith Jayawwera controlled Emagewize, bought a 20 percent stake last Friday is down 1.70 rupees at 28.40, from its previous close of 30.10 rupees.

The All Share Price Index, by mid day had gained 0.24 percent (17.60 points) at 7,214.32 while the Milanka Index which tracks the 25 most liquid shares had slid 0.49 percent (33.19 points) at 6,742.69.

Turnover by mid day was at 1.5 billion rupees driven by Expolanka Holdings which pumped in 362 million rupees. Blue Diamonds followed with 194 million rupees and Panasian Power with 93 million rupees.

Blue Diamond drove volume with 25 million shares trading. The counter was closely followed by Expolanka Holding which saw 24.9 million shares trade by mid day. Panasian Power was next in line with 13.9 million.

Serendib Land witnessed the highest price gain of 33.3 percent, up 500.00 rupees at 2,000.00 rupees. Mercantile Shipping share price appreciated 14 percent, 40 cents to 325.00 rupees. Blue Diamonds is up 13.64 percent, 90 cents at 7.50 rupees.

source - www.island.lk