Mixed run continues at Colombo Bourse

The mixed and lackluster run continued at the Colombo Bourse making investor concerns linger.

The All Share Index gained by 14.6 points whilst MPI dipped by 20 points on a day when turnover was only Rs. 1.3 billion. Foreigners were net sellers to the tune of Rs. 64 million.

“The ASPI edged marginally higher on selective buying interest while overall investor sentiment was cautious amid moderate turnover levels,” John Keells Stock Brokers said.

NDB Stockbrokers also said ASPI gained while MPI continued to decrease amidst blue chip stocks’ dip and added renewed interest was witnessed in stocks such as Lankem Ceylon, Brown & Company and Colombo Fort Land.

“Investor participation has drastically come down since March. Possible positive interim results may break the dull momentum,” NDB Stockbrokers said.

The Diversified sector was the main contributor to the market turnover (due to Colombo Fort Land and CT Holdings) with the sector index decreasing 0.11%. The Chemical & Pharmaceutical sector also contributed to the market turnover (sector index increasing 2.97%) mainly due to Lankem Ceylon. The share price of Lankem Ceylon increased by Rs 46.60 (10.13%) and closed at Rs 520. Lanka Walltile announced an interim dividend of Rs 1.50 per share while Asian Hotels & Properties announced a final dividend of Rs 2.00 per share.

The share price decreased by Rs 0.20 (2.59%) in Piramal Glass despite the positive interim results.

Asia Wealth said the market despite starting off for the day on a positive note, lost grounds during the middle hours of trading, ending up on a mixed note.

“Overall market behaviour was on a slow note, except for a few notable transactions on selected counters,” it added.

It said Lankem Ceylon emerged as the top traded counter, contributing circa 14% of the day’s turnover on the back of institutional participation. High net worth interest was evident in both Colombo Fort Land & Building and Central Finance, where the latter saw a block of 15,000 shares crossed at a price of LKR1,425.00. Meanwhile, Brown & Company along with C T Holdings grabbed institutional interest during trading. Furthermore Lion Brewery saw a block of shares counting to 100,000 crossed off at LKR234.00.

Reuters said stock market closed firmer on Wednesday in trading after illiquid Lanka Ashok Leyland jumped nearly 42 percent to a record high on share-split speculation, but gains were capped by losses in telecoms and diversified shares.

Lanka Ashok Leyland, a large-cap vehicle marketer, leapt 41.9 percent to a record 6,500 rupees per share based on the split rumour, which pushed the motor sector up 15.6 percent to an all-time high.

But 1.9 percent fall in leading mobile operator Dialog Axiata and a 1.2 percent loss in market heavyweight John Keells Holdings kept the overall index in check.

 The island’s main share index closed 0.20 percent or 14.61 points firmer at 7,363.78. It hit a record closing high of 7,811.82 on Feb 14.

Turnover was 1.32 billion Sri Lanka rupees ($12 million), well below last year’s average of 2.4 billion and less than this year’s daily average of 3 billion.

Traded volume was 37.1 million, lowest since April 11, against a five-day average of 47.5 million. The 30-day and 90-day average trading volumes were 53.9 million and 63.7 million, respectively. Last year’s daily average volume was 67.9 million.

The bourse is still Asia’s best performer in 2011 with a 11 percent gain, after bringing in the region’s top return of 96 percent last year.  

The rupee edged up to 110.16/18 a dollar from Tuesday’s close of 110.18/20 on exporter dollar conversions in low volumes, dealers said. The central bank expects further rupee appreciation this year.