Stock market recovers

The Colombo stock market made a welcome all round recovery yesterday with both indices up on top of healthy turnover.

After many days of mixed performance, the ASPI gained by 14 points and MPI by 20 points whilst turnover amounted to Rs. 2 billion. Foreigners continued to be net sellers largely on exit from Commercial Bank.

“Selective buying continued to push the indices higher while heavy interest was evident on banking sector counters,” John Keells Stock Brokers said.

“Indices gained today with a comparatively high turnover. ASPI gained around 50 points during early trading while MPI increased gradually,” NDB Stockbrokers added.

It said MPI recovered mainly due to the price appreciations of Commercial Bank, Pan Asia Banking Corporation and Brown & Company.

The Bank, Finance & Insurance sector was the main contributor to the market turnover (due to Commercial Bank and Pan Asia Banking Corporation) with the sector index increasing 0.59%. Commercial Bank was the main contributor to the market turnover with a crossing of 1,000,000 shares at Rs 265. Foreign holding of the company decreased by 1,000,000 shares. The share price increased by Rs 2.20 (0.83%) and closed at Rs 268.

The Diversified sector also contributed to the market turnover (sector index decreasing 2.97%) mainly due to Colombo Fort Land.

Investors showed interest in Pan Asian Banking Corporation today with the positive interim results (recorded an operating profit of Rs 196.02 Mn-a profit growth of 190% for the quarter). The company also announced a subdivision of one share for every existing share.

Ceylon Tobacco, which was amongst the top negative contributors yesterday jumped backed to the top positive contributors list. The company announced an interim dividend of Rs 4.20 (less withholding tax) per share.

Reuters said the ASPI closed at its highest since April 21, led by financials, but retail profit taking capped the gain as investors cashed in stocks ahead of some lucrative initial public offerings.

Foreign investors sold a net 307.9 million rupees’ worth of shares. They have sold a net 8.20 billion in 2011, and a record 26.4 billion in 2010.

Turnover was 2.08 billion Sri Lanka rupees ($18.9 million), well below last year’s average of 2.4 billion and less than this year’s daily average of 3 billion.

Traded volume was 44.7 million, against a five-day average of 42.7 million. The 30-day and 90-day average trading volumes were 54.4 million and 63.7 million, respectively. Last year’s daily average volume was 67.9 million.

The bourse is still Asia’s best performer in 2011 with a 11.2 percent gain, after bringing in the region’s top return of 96 percent last year.

source - www.ft.lk