Market rebounds as sentiment improves

Saturday, 22 October 2011 00:00 - - {{hitsCtrl.values.hits}}

The market regained ground after eight days as selling came to a stop and retailers waiting on the sidelines started entering the market, brokers said.

Investors were seen in a buoyant mood which was reflected in both the indices, the All Share Price Index (ASPI) and the Milanka PriceIndex (MPI), SC Securities said in its daily report while NDBS Stock brokers said the market witnessed a bullish sentiment across the board ending the negative rally witnessed throughout the week.

The All Share Price Index rose 1.19% to 6356.94 while the Milanka Price Index climbed up 0.82% to 5,674.86 on turnover of Rs. 795 million. Net foreign sales amounted to Rs. 5 million.

Reuters said the market rose on rumours that the Securities and Exchange Commission’s Director General had resigned or was being asked to, which he had denied.

Interest was in punting stocks as market sentiment improved though turnover remained low, brokers said. Among the highest contributors to turnover were Colombo Land which saw 1.36 million shares trade contributing Rs.1.36 million to turnover, HVA Foods which saw 1.63 million shares trade contributing Rs.65.7 million to turnover and Commercial Bank nonvoting shares which saw 555,200 shares trade contributing Rs.41.3 million to turnover.

Colombo Land shares closed Rs. 2.60 higher at Rs. 29.30, HVA Foods Rs. 5.40 higher at Rs. 41.50 and Commercial Bank nonvoting shares Rs. 1.40 higher at Rs. 74.50.

The highest contributors to turnover were the Banks, Finance and Insurance sector, Manufacturing sector and Beverage sector.

The bourse has fallen 7.4% this month through Thursday, Reuters said. It is Asia’s fifth best performer with a year-to-date loss of 4.2% after being on top for most of 2011.The bourse has fallen 7.4 percent this month through Thursday. It is Asia’s fifth-best performer with a year-to-date loss of 4.20 percent after being on the top for most of 2011.The bourse has fallen 7.4 percent this month through Thursday. It is Asia’s fifth-best performer with a year-to-date loss of 4.20 percent after being on the top for most of 2011.