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Friday Nov 15, 2024
Friday, 26 August 2011 01:26 - - {{hitsCtrl.values.hits}}
Foreign demand for JKH shares gave a fillip to the Colombo Bourse closing on the up ending the negative run experienced since late last week.
“Indices witnessed gains today mainly due to the price appreciation of index heavy John Keells Holdings,” NDB Stockbrokers said. “Apart from that, the speculative stocks attracted investors again to assist the positive tone,” it added.
Overall ASPI gained 26 points or 0.39% and MPI by 31 points or 0.51 but turnover was a lacklustre Rs. 1.6 billion.
Diversified sector also contributed significantly to the market turnover (due to John Keells Holdings) and the sector index increased by 1%.
Two crossings were recorded for John Keells Holdings (250,000 shares at Rs. 203.50 and 104,900 shares at Rs. 212). Overall JKH saw 807,000 of its shares traded hitting a peak of Rs. 212.50 before closing at Rs. 210.60, up by Rs. 6. Foreign interest on JKH resulted in a net inflow of Rs. 62.5 million, which analysts said was a welcome sign.
The 10% price band imposed on Colombo Land and Development and HVA Foods was removed yesterday which saw renewed interest on both.
Land & Property sector was the main contributor to the market turnover (due to Colombo Land & Development) and the sector index increased by 0.69%. Colombo Land & Development was the main contributor to the market turnover. The share price increased by Rs. 2.60 (4.23%) and closed at Rs. 64.40. Renewed interest was witnessed in HVA Foods and East West Properties.
Arrenga Capital said following a four day slump denoting a loss of 138.9 points, bourse was back on tracks as it touched an intra-day high of 6,880.06 points (up 67.4 points from Wednesday’s close) to end with a 26.5 point gain.
“Buying interest was evident in selected heavy index counters such as John Keells Holdings, Aitken Spence and Sri Lanka Telecom whilst retailers were found chasing after the low-mid cap counters, it said.
Institutions were also seen active in Softlogic Holdings as it witnessed a parcel of 951.8k shares being dealt at Rs. 23. Heavy price volatility was also evident in The Lanka Hospital Corporation, where the counter touched and intra – day high of Rs. 68 (up 3.5% from Wednesday’s close) and a low of Rs. 61.2. Profit taking on the counter ended it to close low at Rs. 63 (down 4.3%).
DNH Financial said the general inertia that had characterised the market this week was likely to extend to today as well. It expects the market momentum to remain relatively subdued.
“With the prospect of short term gains well behind us, we advise investors to consequently take advantage of the current market lull by maintaining a defined investment horizon and focusing on accumulating positions in companies that will deliver quality earnings in the medium to long-term,” DNH said.
