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Saturday, September 3, 2011

Bourse closes flat after surge with focus on punting stock

"Not a bad day,’’ says brokers
The Colombo bourse closed flat yesterday after the previous day’s surge but with a turnover of nearly Rs.3 billion, down from the previous day’s Rs.8.8 billion, and the two indices marginally down.

But brokers, noting that the indices were up most of the day and heavy retail interest in a number of speculative counters, said "it wasn’t a bad day."

"Activity was focused on Blue Diamonds which was the day’s top turnover generator, and Colonial Motors," a broker said on condition of anonymity.

"There was foreign interest in JKH and the Commercial Bank."

Blue Diamonds gained Rs.2.40 to close at Rs.11.20 on nearly 39.9 million shares traded between Rs.9 and Rs.11.40 contributing Rs.410.3 million to the day’s business volume while Colonial Motors was up Rs.32.40 to close at Rs.485 on over 0.6 million shares done between Rs.460 and Rs.492.

"With a lot of cars being sold on permits, the results at Colonials should be good and this was a driving force in the sharp price gains we’ve been seeing lately," a broker said. "There was interest in Softlogic Holdings which closed Rs.1.10 up at Rs.24 also on results."

Hayleys which moved the market on Thursday with deals involving its Deputy Chairman, Mr. Dhammika Perera, gained Rs.8.40 to close at Rs.390 on slightly less than 0.1 million shares traded between Rs.386 and Rs.395.

Amaya Leisure (Connaisance) where Hayleys bought control from Perera on Thursday was up Rs.1.30 to close at Rs.109 on nearly 3,100 shares traded at Rs.109.

Blue Diamonds non-voting share attracted major interest with nearly 67.9 million shares traded gaining 60 cents to close at Rs.3.70 on a trading range of Rs.3.10 to Rs.3.80.

"We saw heavy volumes of speculative stocks like Tess Agro (52.6 million shares), Colombo Land (2.7 million shares) and HVA Foods (1.3 million shares) traded on retail interest," a broker said.

Tess was up 20 cents to close at Rs.3.90 while Colombo Land lost Rs.2.20 to close at Rs.68.90 and HVA was up Rs.6.30 to close at Rs.69.30.

Ceylon Tobacco gained Rs.3 to close at Rs.395 on over 0.1 million shares done between Rs.393 and Rs.395.

Lanka Floor Tiles announced that there was a work stoppage at its factory at Jalatara, Ranala from the evening of September 1 over a dispute between the management and workforce.

Lanka Ceramics announced a final dividend of Rs.1.50 for 2010/11 after shareholder approval at an AGM on Sept. 29. The share will trade XD from Sept. 30 with payment on Oct. 10.

Mr. Nimal Perera, Group Finance Director of Amaya Leisure now under Hayleys control, has resigned from his executive position in the company but will remain on the board. Perera is also a director of Hayleys and investment advisor to Mr. Dhammika Perera.

source - www.island.lk