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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2835

Colombo: Market mixed despite Strong foreign participation

By Quintus Perera - Asian Tribune

Colombo, 21 May, ( The Share Market Review for the preceding week on All Share Price Index (ASPI) complied by the research team of the HNB Stockbrokers (Pvt) Ltd indicated the market started off on a low note this week with, indices falling by around 50 points on Monday.

However with the reduced level of violence in the North and East, the indices managed to hold ground and pick up moderately during the latter part of the week. Comparing Week on Week the indices showed differing movements, with the All Share Price Index (ASPI) falling by 9.5 points compared to last week, while the Milanka Price Index (MPI) improved by 18.5 points, to close above last week’s closing level.

This was mainly due to Carsons shares which are not represented in the MPI, showing a notable 12.1% decline in share price during this week, to close at Rs.2700 per share (Carsons is currently ranked 5th in terms of market capitalization). The ASPI closed on Friday at 2226 points, while the MPI closed at 2849.4 points for the week.

DFCC shares were in the limelight this week amid a 3% or 1.8 million stake being sold on Thursday at a price of Rs.260 per share. According to Newspaper reports, the selling party had been Readyware Industries Ltd., while a foreign party bought the quantity. DFCC was the highest contributor towards weekly turnover contributing Rs.479.8 million. The counter was seen trading within the range of Rs.275 and Rs.265 per share to close the week at Rs.275 per share on Friday.

While DFCC became the highest contributor towards turnover, Dialog was the highest traded stock for yet another week running, as foreign interest remained unhampered on the counter. Around 8.3 million of Dialog shares traded for the week, with the contribution towards turnover amounting to Rs.178.2 million. During the week the counter traded between a thin margin of Rs.21.75 and Rs.21 per share, closing unchanged WoW at Rs.21.50 per share.

Vallibel Power Erathna the first IPO for 2006, made its debut in the market this week on Tuesday. Though the counter opened at a price of Rs.8.25 per share, just Rs.0.25 per share above the IPO price of Rs.8 per share, subsequently it fell below the IPO price to close the week at Rs.6.50 per share. A mere 0.8 million shares of Vallibel traded during the week. The IPO of Vallibel saw 50 million shares being offered, while being oversubscribed on the first day of opening for subscription.

Similar to last week interest was witnessed in blue chip counters JKH and Caltex shares, with notable quantities of both counters trading for the week. Approximately 1.2 million of JKH shares traded for the week, with the most part being foreign sales. The counter contributed Rs.176.7 million towards weekly turnover, with the share price showing a slight 1.8% decline from last week to close at Rs.147.25 per share.

Plantations stocks were among the highest gainers for the week with counters, namely Horana, Namunukula, Malwatte Valley, Hapugastanne, Udapusselawa and Balangoda showing notable improvements to their share prices this week. Apart from Malwatte Valley plantations, which saw 124,300 shares trading other plantations counters saw meager quantities trading during the week.

Activity levels were modest this week at Rs.1.4 billion, with the major contribution coming on Thursday from the sale of DFCC shares. WoW turnover showed a 6.9% decline, comparing average daily turnover levels. Average daily turnover for this week stood at Rs.282.7 million compared to Rs.303.7 million recorded during the last week.

Foreign purchases for the week amounted to Rs.742.3 million with the DFCC share trade contributing around Rs.430 million on Thursday. Meanwhile foreign sales remained low at Rs.270.7 million for the week. The resultant net foreign inflow amounted to Rs.471.6 million, while foreign participation amounted to 35.6% of total activity.

The highest traded stocks for the week were Dialog, Overseas Realty, DFCC, JKH and Royal Ceramics.

- Asian Tribune -

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