Foreigners sell but Bourse surges to 3 week high

Friday, 24 December 2010 00:58 - - {{hitsCtrl.values.hits}}

In contrast to Wednesday’s net buying, foreigners yesterday sold out but the stock market gathered more strength helped by strong local interest.

On top of over 1% gain, the benchmark ASPI moved up a further near 1% whilst the more active MPI improved by 1%. Turnover was a healthy Rs. 2.2 billion. Foreigners who were net buyers to the tune of Rs. 521 million on Wednesday turned net sellers to the value of Rs. 710 million. Year to date foreign investors have sold a net Rs. 25.6 billion.

“The indices recorded further gains on renewed local buying interest across most sectors while trading was dominated by activity on JKH and the poultry sector,” John Keells Stock Brokers said.

“The positive momentum continued today to see the indices close on a positive note yet again. However, foreign selling was witnessed in counters including JKH and COMB,” added NDB Stockbrokers.

Diversified and Banks, Finance & Insurance sectors were the highest contributors to the market turnover while sector indices increased by 0.61% and 1.29% respectively. Best performing sector was Construction & Engineering (+3.78%) whilst worst performer was Telecommunication (-0.91%).

Premier conglomerate John Keells Holdings made the highest contribution to the market turnover while the share price increased by Rs 1.00 (0.33%) and closed at Rs 300.60. Foreign holding of the company dipped by 2.1 million shares. Until yesterday JKH was under heavy foreign buying.

Bairaha Farms also contributed to the market turnover while the share price decreased by Rs 6.90 (2.47%) and closed at Rs 270.10. The stock peaked to an all time high of Rs. 294 during the day before closing lower. On Wednesday it gained by Rs. 31.80.

A crossing was recorded for 127,534 shares of Commercial Bank at Rs 259.50.

Lanka Walltile announced a capitalization of reserves of one (1) for five (5) shares at Rs 24 per share.

Meanwhile the rupee closed firmer at 111.05/08 a dollar from Wednesday’s 111.28/30 on dollar demand for stocks-related transactions, dealers said. The rupee has risen 2.96 percent in 2010.