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Tuesday Nov 19, 2024
Wednesday, 3 November 2010 01:48 - - {{hitsCtrl.values.hits}}
Turnover hits 12-week low
The Colombo bourse turned lackluster yesterday for want of stimulating news.
The All Share Price Index dipped 41.8 points to close at 6,710.6 points (-0.6%), whilst the Milanka Price Index also dipped 47.4 to close at 7,228.9 points (-0.7%).
Turnover was Rs. 1.02 billion, its lowest since Aug. 12 and below this year’s daily average of Rs. 2.5 billion.
“Indices took a dive again ending the momentum gathered within the last three days. None of the top five turnover contributors were able to contribute more than 10% to the turnover of the market,” NDB Stockbrokers said.
Bank Finance & Insurance and Manufacturing sectors were the highest contributors to the market turnover, while the sector indices declined by 0.06% and 0.40% respectively.
Ahead of dealings suspension from Wednesday on account of consolidation of its shares, Reefcomber Hotels made the highest contribution to the market turnover although the price decreased by Rs. 0.20 (0.99%) and closed at Rs. 19.70.
Commercial Bank also contributed to the market turnover while the price inclined by Rs. 2.30 (0.84%) and closed at Rs. 277.
Asia Securities said after gaining marginally in the early hours of trading, the market continued to dip thereafter on the back of profit taking that was witnessed across the bourse.
It said institutions continued their active play in Commercial Bank with Distilleries also experiencing the same. High net worth participation was evident in Bukit Darah and Carson Cumberbatch with Carson Cumberbatch making an announcement to subdivide each ordinary share into 02 and thereafter make a bonus issue of 01:50.
Environmental Resources Investment along with its 58.4% subsidiary, Dankotuwa Porcelain, was seen among retailers’ favourite pick for the day. Furthermore, investors were also seen active in Piramal Glass on the back of healthy performance during 2QFY11 to report LKR157.0 mn (Vs LKR0.7 mn in 2QFY10), Asia added.
Reuters reported that the Bourse fell as mainly retail investors booked profits to raise cash buy shares in local gas distributor Laugfs’ initial public offering on November 4th.
Colombo is Asia’s best performer in 2010 with a 98.2 percent gain as the island’s economy rebuilds after the end of a civil war in May 2009.
The bourse is trading at the highest forward price-to-earnings ratio in Asia and global emerging markets at 20.1 times, compared with 13.5 and 12.8 respectively, Thomson Reuters StarMine data shows.
The CSE’s 14-day relative strength index is at 56.7, more towards the upper neutral limit 70.
Reuters also said that local investors are bullish on the bourse as the September quarterly earnings released by 50 listed firms so far have shown a growth of 304.2 percent year-on-year and another 189 firms have yet to post their earnings.
However, foreign investors have been net sellers throughout the year and on Tuesday sold a net 86.4 million rupees worth’ of shares, extending the net outflow to 26.4 billion rupees in 2010.
Meanwhile the rupee closed flat at 111.68/70 a dollar as demand for dollars from importers was offset by a state bank selling at 111.70 rupees, analysts said.
