Stock market stagnant

Wednesday, 27 April 2011 00:45 - - {{hitsCtrl.values.hits}}

The Colombo stock market continued its struggle with lackluster performance except for a few strategic and speculative deals.

A crossing of 1.4 million shares of Commercial for Rs. 378 million was the highlight with buyer believed to be EPF and seller the Japanese fund SBI Venture Holdings. The share price increased by Rs. 3.60 (1.33%) and closed at Rs. 266. Foreign holding of the company decreased by 1,000,000 shares.

The benchmark ASPI gained marginally by 3 points whilst MPI dipped by 18 points on a day when only Rs. 1.3 billion turnover was generated. Contrary to Monday’s net inflow, foreigners were net sellers to the tune of Rs. 277 million. Motor stocks continued their dip over the recent increase in import duties but Lanka Ashok surprisingly topped the gainers list up 16% or Rs. 624.70 to close at Rs. 4,579.50 (peaked to Rs. 4,800) on a volume of 2,300 shares. There was renewed interest on SLT which gained by over 6% to close at Rs. 59.

"The indices remained stagnant as gains on few large cap counters such as SLTL and BUKI were offset by declining prices across the board while turnover was dominated by local investors amid foreign selling," John Keells Stock Brokers said.

NDB Stockbrokers headlined its view as “Stagnant market” noting that indices were mostly stagnant during the day. However, MPI closed in red as blue chip stocks failed to appreciate amidst dull investor participation.

The Bank, Finance and Insurance sector was the main contributor to the market turnover (due to Commercial Bank) with the sector index increasing 1.12%.

Reuters said the stock market closed firmer in thin turnover on Tuesday from four-week lows as gains in telecom shares offset losses in financials as cautious investors awaited quarterly earnings and foreign investors were net sellers.

Rising inflation and an adverse war crime report by a U.N.-appointed panel, which may have an impact in Sri Lanka’s future foreign investments weighed on sentiment, resulting in light turnover, analysts said.

Foreign investors sold a net 277 million rupees’ worth of shares. They have sold a net 7.83 billion in 2011, and a record 26.4 billion in 2010.

The bourse is still Asia’s best performer in 2011 with a 10.8 percent gain, after bringing in the region’s top return of 96 percent last year.

The rupee closed flat at 110.18/20 a dollar on low trading volumes, dealers said. The Central Bank has forecast further appreciation this year.