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Thursday, September 22, 2011

Bourse hits six week low

Large parcels of The Finance Co. traded, foreign investors net buyers after 12 sessions

The bourse continued its downward trend yesterday where broad levels of selling were displayed on stocks but foreign buying returned to after an absence of a dozen sessions.

ASI decreased by 35.69 points (-0.52%YoY) to close at 6,792.88 where as sensitive MPI dipped by 30.89 points (-0.50%) to end at 6,138.33.

Reuters reported that the stock market fell to a six-week low as retail investors sold shares to meet a liquidity shortage amid forced selling by brokers to meet margin debt reductions and month-end settlements, dealers said.

It noted that Sri Lanka’s main share index <.CSE> closed 0.52 percent or 35.69 points weaker at 6,792.88, its lowest since Aug. 11. It is still Asia’s best performer with a return of 2.37 percent on the year.
“Retail selling pressure continued to drag the indices lower,” John Keells Stockbrokers said in a research note.

The Finance Company saw 25.6 million shares trade on the Colombo bourse yesterday, contributing Rs. 1.2 b to the day’s turnover of Rs. 2 b.

There were two crossings of 2.9 million parcels at Rs. 48 and two parcels of 2.9 million, which traded at Rs. 48.

Market sources said that the transaction had taken place between Board Directors Dr. T. Senthilverl that had bought while Ajith Devasurendra had sold.

Approximately 15% of the company’s 160.4 billion issued shares were traded.

Other large parcels traded included Laugfs Gas Ltd., which saw 25.6 million shares trade, contributing Rs. 340.9 million to turnover and Regnis Lanka Plc, which saw 1.2 million shares trade, contributing Rs. 274 million to turnover.

Laugfs’ shares closed Rs. 6.50 higher at Rs. 43, while Regnis closed up Rs. 17.10 at Rs. 237.50.

Foreign participation was recorded at 6.2% of the total market activity and at the end of the day foreign investors were the net buyers with a net foreign inflow of Rs. 6.99mn. This was the first net foreign buying in 12 sessions. But thus far in 2011, offshore investors have sold 15.93 billion after a record 26.4 billion in 2010.

source - www.ft.lk