Bourse begins week negatively

Tuesday, 26 April 2011 01:19 - - {{hitsCtrl.values.hits}}

Reaffirming the continuous struggle, the Colombo stock market yesterday began a fresh week on a negative note with indices down on top of below average turnover.

“The indices dipped sharply due to heavy selling pressure across the board amid moderate turnover levels,” John Keells Stock Brokers said.

ASPI was down by 1.5% and MPI by 1.3% whilst turnover was only Rs. 1.5 billion. The only silver lining was a net foreign inflow of Rs. 72 million.

“All sector indices saw a downturn amidst continued lackluster investor participation. Decline in blue chip stocks reversed the positive momentum of MPI which was witnessed towards the end of last week,” NDB Stockbrokers said adding that most of the positive contributors were illiquid stocks.

The Bank, Finance and Insurance sector was the main contributor to the market turnover (due to Central Finance) with the sector index increasing 1.03%.

Central Finance made the highest contribution to the market turnover with two crossings of 41,000 shares at Rs. 1,430. The share price increased by Rs. 38.50 (2.74%) and closed at Rs. 1,430. The share price has increased by 78% from mid-March.

The Diversified sector also contributed to the market turnover (sector index decreasing 0.01%) due to John Keells Holdings. Piramal Glass announced a final dividend of Rs 0.30 per share. However, the share price decreased by Rs. 0.10 (0.87%) and closed at Rs. 11.40.

Lankem Developments (XR) saw 1.87 million of its shares traded before closing at Rs. 32.40, down by Rs. 46.30 whilst parent Lankem Ceylon dipped by Rs. 1.20 to Rs. 462.20.

Asia Wealth Management said market initiated the week witnessing a bristly decline during the day whilst both the indices ended in the red demonstrating the negative investor sentiment. IT linked institutional and high networth interest on Central Finance Company and former for JKH. Trades on Lankem revolved around retails.

Asia also said despite the dullness in the market activity level during the day was given a boost by few negotiated deals. Dialog Axiata witnessed a bulk of 2.5 million shares transacted at Rs. 10.30 each while midsize block of National Development Bank crossed off the board at Rs. 165 per share.