Bourse rebounds with Rs. 35 b value gain

Friday, 6 May 2011 02:36 - - {{hitsCtrl.values.hits}}

The Colombo stock market made a welcome rebound with combined value gaining by Rs. 35 billion though turnover remained below par.

Thanks to renewed optimism, the All Share Price Index gained by 1.4% or 103 points and Milanka gained by near 1% or 56 points thereby boosting market capitalisation by Rs. 35 billion yesterday. Turnover was Rs. 1.6 billion, below Wednesday’s Rs. 1.8 billion.

“The indices gained sharply on renewed buying across the board amid moderate turnover levels and low foreign participation while heavy activity on finance, manufacturing and chemical counters was evident,” John Keells Stock Brokers said.

“Prices rebounded with almost all sector indices recording gains.

A recovery was expected after the negative momentum witnessed during last few days. Institutional investor participation was witnessed today to a certain extent and the interest may have to continue to sustain prices,” NDB Stockbrokers said.

Others said that welcome gain by blue chips include JKH boosted the market.

The Bank, Finance & Insurance sector was the main contributor to the market turnover (mainly due to Nation Lanka Finance, HDFC Bank and LB Finance) with the sector index increasing

1.35%.

Lankem Ceylon was the main contributor to the market turnover. The share price increased by Rs 50.90 (10.15%) and closed at Rs 550.90.

The Manufacturing sector also contributed to the market turnover (sector index increasing 1.13%).

DFCC Bank announced a final dividend of Rs 3 per share. The share price of the company moved up by Rs 4.90 (1.12%) and closed at Rs 171.80. Piramal Glass also announced a first & final dividend of Rs 0.30 per share.

Asia Wealth said after three consecutive days of decline, market changed its direction yesterday with the ASI registering a gain of over 100 points.

Lankem Ceylon, sided by strong retail & high net worth investor participation topped today’s turnover list (with a contribution of 9.6%). Investors were seen continuing their interest on Housing Development Finance Corporation Bank, whilst Finance sector counters including Nation Lanka Finance & LB Finance saw active institutional & high net worth involvement, with latter witnessing a block carrying 250,000 crossed off at Rs. 168. Meanwhile Aitken Spence Hotel Holdings traded backed primarily by institutions where the counter saw a block of 520,000 being crossed at Rs. 97. Mid-sized block transfers of heavy indexed counters, John Keells Holdings & Ceylon Tobacco took place today. John Keells Holdings saw a 84,500-content parcel changing hands at Rs. 280.0 whilst Ceylon Tobacco saw 60,000 shares being crossed off at Rs. 380