Friday Nov 15, 2024
Friday Nov 15, 2024
Friday, 8 July 2011 03:47 - - {{hitsCtrl.values.hits}}
The Colombo stock market yesterday managed to sustain its rebound though moderately.
ASPI opened to a strong start, gaining over 100 points during early hours to touch 7,000 points, but slipped gradually. The gain in the ASPI was largely attributed to the price increase in Lanka Orix Finance Company. MPI, however, closed lower having stayed red throughout the day. Turnover also remained subdued.
Banks, Finance and Insurance sector was the main contributor to the market turnover (due to Lanka Orix Finance and People’s Merchant Bank), while the sector index increased by 4.33%. Diversified sector also contributed significantly to the market turnover (due to Expolanka Holdings and John Keells Holdings).
The sector index decreased 1.30%. 13.7 mn shares of the Expolanka Holdings exchanged hands at Rs. 13.70. The share price increased by Rs. 0.10 (0.74%) and closed at Rs. 13.70. Foreign stake of the company increased by 13,010,200 shares. Interest continued in On’ally Holdings while renewed interest was witnessed in Capital Development and Investment.
Reuters said stocks rose for a third straight session on Thursday, to a two-week high, boosted by foreign inflows, with hotel shares among key gainers, and debutant Lanka Orix Finance Company.
Sri Lanka’s main share index gained 0.50 percent or 34.35 points to 6,918.41, its highest close since 22 June. It had hit a six-month low on Monday, but has gained 1.5 percent in the last three sessions.
Asian Hotels Properties rose 5.1 percent, Kandy Hotels gained 4 percent and Trans Asia Hotel rose 1.93 percent, though volumes were rather thin.
Since 1 June, the index had shed 6.35 percent mainly due to forced selling, in line with the policy of the regulator Securities and Exchange Commission (SEC) to recover credits, aiming to eliminate all credit dealing by end 2011. Shares are still up 4.26 percent so far this year. It was the top performer in the Asia-Pacific region in 2010 and 2009 with 96 percent and 125 percent returns, respectively.
The day’s turnover was 1.5 billion Sri Lanka rupees ($13.7 million), well below last year’s average of 2.4 billion and this year’s daily average of 2.8 billion.
The SEC has said there may be over 30 billion rupees of liquidity locked in private placements and initial public offerings since February this year.
Net foreign inflows stood at 189.7 million rupees on Thursday, but foreign investors have sold 7.28 billion rupees in 2011 after a record investment of 26.4 billion in 2010.
Traded volume was 75.7 million, against a five-day average of 57.6 million. The 30-day and 90-day average trading volumes were 172.2 million and 103.2 million, respectively. Last year’s daily average was 67.9 million.
The rupee edged up at 109.47/50 a dollar from Wednesday’s close of 109.49/50 as exporters converted the dollars with a state bank defending it by selling dollars at 109.50, dealers said.
