Investors take profit at Bourse

Wednesday, 9 February 2011 00:26 - - {{hitsCtrl.values.hits}}

Investors yesterday took profit yesterday after driving the Bourse to record high during the past few days.

It was a day of see-saw for the indices and after investors had cashed-in, fresh round of buying edged the All Share Index to positive territory.

“The ASPI dipped on profit taking during the early hours of trade but recovered on a fresh round of buying and turnover remained high due to retail activity,” John Keells Stock Brokers said.

ASPI finished the day up 4 points but MPI was down by 13 points. Foreign investors continued to be net sellers.

Best Performing Sector was Hotels and Travels (+2.05%) whilst the worst was Information Technology (-3.41%) for the second consecutive day.

“Market was volatile in early trading as investors showed mixed sentiments. Buying pressure witnessed towards the latter part, helped ASPI gain slightly. However, profit taking was witnessed in Poultry, Plantation and Manufacturing sectors. Interest was witnessed in the Hotel sector,” NDB Stockbrokers said.

“Colombo Bourse witnessed mixed sentiments today, where market initiated edging up slightly, but remained in the negative territory during most part of the trading; putting a halt to the bullish sentiments prevailed,” Asia Securities said.

Diversified and Bank, Finance & Insurance sectors were the highest contributors to the market turnover. Diversified sector index decreased by 0.18% while Bank, Finance & Insurance sector index increased by 0.20%.

Ceylinco Insurance made the highest contribution to the market turnover with five crossings (43,600 shares at Rs. 460 and 625,000 shares at Rs. 500). The share price increased by Rs. 74.30 (17.48%) and closed at Rs. 500.

Asia said Ceylinco Insurance saw heavy Institutional play, where counter added up to 9.6% of day’s turnover. Richard Pieris and Colombo Fort Land & Building saw continued to grab investor attention, where counters were traded heavily among retail and high net worth investors. Lanka Walltile traded with the institutional backing, whilst Pelwatte Sugar witnessed heavily retail activity during the day.

As envisaged Cargills yesterday peaked to a high of Rs. 253 before closing at Rs. 242.30, up by Rs. 4.40 as investors toasted its Rs. 1.4 billion acquisition of McCallum Breweries and Three Coins Beer business.

Eastern Merchant topped the percentage wise gainers list up 22.45% or Rs. 123.50 to close at Rs. 673.50 whilst it touched an intra-day high of Rs. 800 with 4,300 shares traded. Fortress resorts, Vallibel Finance were among top gainers. Several of the stocks which had a bull run in recent weeks such as Three Acres, Grain Eleveators figured in the biggest losers percentage wise on account of profit taking.

Richard Pieris enters top 20 most valuable league

DIVERSIFIED blue chip Richard Pieris and Company Plc is enjoying a revival in investor interest as the stock has moved into the elite top 20 most valuable league.

RPC finished 2010 at number 24 with a market capitalisation of Rs. 20.5 billion on a share price of Rs. 10.50. By yesterday the share price had zoomed to Rs. 15.50 after touching a peak of Rs. 15.90.

At yesterday’s closing price RPC’s market capitalisation was Rs. 30.01 billion pushing NDB Bank out of the top 20 from this week. In comparison to 2010 close, RPC share price has appreciated by nearly 50%.