Retailers take profits after boom

Retailers took profits after the stock market gained sharply early last morning, thereby checking a higher close.

The bourse took off to a sharp rise in early trading, thereafter triggering a profit taking mode among investors. Eventually high gains were erased and the benchmark ASPI closed up by just 0.10%. MPI closed marginally lower.  

Owing to bullish buying, the ASPI gained by 26 points (0.37%) before losing 74 points (1%) soon after.

A degree of uncertainty was evident judging by the relatively low turnover of Rs. 3.5 billion, in comparison to between Rs. 4 and Rs. 5 billion recorded throughout the week.

Whilst locals took profit, foreigners for the first time this year finished as net buyers yesterday. But they have sold a net Rs. 1.7 billion worth shares so far this year after selling a net Rs. 26.4 billion last year.

“Profit taking was witnessed across the board while Banking and Investment Trust sectors helped the ASPI gain slightly after the early drop,” NDB Stockbrokers said.

It noted that volatility was to be expected with the high participation of retail investors.

A Reuters report quoted stockbrokers as saying margin calls forced an early selloff that sent the bourse down by 1.5 per cent before later speculative and retail buying sent it back up. 

Power and Energy and Bank, Finance and Insurance sectors were the highest contributors to the market turnover. The Power and Energy sector index decreased by 5.83% while the Bank, Finance and Insurance sector index increased by 1.23%.

Environmental Resources also contributed to the market turnover, while its share price increased by Rs. 8.60 (8.29%) and closed at Rs. 112.

Three crossings were recorded for 750,000 shares of Aitken Spence Hotels at Rs. 112 and 55,000 shares of HNB Bank at Rs. 400.

The Colombo stock market has gained 6.2 per cent in the last 10 sessions.  It has been Asia’s best performer with a 5.8 per cent gain so far in 2011 after being the top performer last year with a 96 per cent return.

Meanwhile, the rupee closed flat at 110.76/79 a dollar, on even supply and demand for dollars, currency dealers said.

Laugfs fizzles

2011’S early trading energiser Laugfs Gas, which peaked to record highs on heavy volumes, yesterday lost steam and ended as the second and third biggest loser percentage wise.

Laugfs’ voting share dipped by 12.4% or Rs. 6.70 to close at Rs. 47.30 after peaking to a high of Rs. 57.50 whilst non-voting lost 10% or Rs. 4 to end the day at Rs. 36.50. It peaked to a high of Rs. 43.

Collectively the twos securities accounted for the highest turnover of Rs. 673 million with the voting share being Rs. 553 million.

Watapota soars to Rs. 4,500; Becomes highest value share

ILLIQUID Watapota Investments’ share price yesterday soared to Rs. 4,500 making it by far the most expensive.

On a trade of 1,300 shares, Watapota created a Rs. 5.7 million turnover yesterday. It closed at Rs. 4,437.50 up by 48% or Rs. 1,436.90.

With a closing price of Rs. 4,437.50, Watapota beat Ashok Leyland which was trading at Rs. 3,999 to the status of most expensive.

In comparison to last week’s closing price of Rs. 800, Watapota share (at yesterday’s peak) has rocketed by Rs. 3,700 or 462%.

The company on Monday announced a 75 for 2 Rights Issue at Rs. 20 each to raise Rs. 502 million, of which Rs. 250 million will be invested in a private placement of Expo Lanka Holdings.