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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2908

Colombo bourse turns positive

By Quintus Perera – Asian Tribune

Acuity – HNB Stockbrokers Research in their Market Review indicated that stocks were confined to a narrow trading range during the first four trading days, as investors remained cautious ahead of the earnings season. However shares climbed on Friday amid gains on blue chip stocks coupled with retail interest on selected mid cap counters.

Comparing Week on Week (WoW) the All Share Price Index (ASPI) increased 1.4% or 31.9 points to close the week at 2395.0 points, while the Milanka Price Index (MPI) edged up by 1.2% or 30.6 points to close at 2671.3 points.

JKH recorded a turnover of Rs.264.6 million for the week contributing the largest portion to the market activity. JKH share while being trading within a price band of Rs.128.50 and Rs.132.50 per share closed the week 1.6% up at Rs.130.00 on Friday.

Total volume of JKH shares traded stood at 2.0 million for the week Foreign interest on Commercial Bank (COMB) saw the largest listed banking stock becoming the week’s second highest contributor, with price rising 4.5% WoW. COMB saw most part of its turnover coming on Wednesday on the back of foreign interest. During the week the stock recorded a turnover of Rs.249.5 million with 1.9 million shares trading within a price range of Rs.127.50 and Rs.133.00 per share. COMB share ended the week at Rs.132.75.

The two midcap stocks Pan Asia (PABC) and Lanka Cement (LCEM) each contributed Rs.115.9 and Rs.90.0 million respectively towards weekly turnover. PABC observed a 14.8% increase in its share price for the week to close at Rs.15.50 per share while LCEM ended 8.7% up at Rs.28.00 per share.

Meanwhile Hotel Developers (HDEV) share price jumped by 28.2% for the week as investors chased the stock on speculative reasons. The HDEV stock contributed Rs.59.3 million to the weekly market turnover with 0.5 million shares changing hands.

Activity levels picked up during the week dominated largely by retail investors. The total turnover for the week stood at Rs.1.6 billion, up 122.6% while average daily turnover was reordered at Rs.316 million compared to last week’s Rs.177.6 million.

Foreign investors remained net buyers for the week amounting to Rs.75.3 million. Foreign purchases for the week stood at Rs.431.6 million, while foreign sales totaled to Rs.356.3 million. The foreign participation for the week was at 24.9% of total activity showing a marginal improvement compared to 23.6% witnessed last week.

Heavily traded stocks during the week were Pan Asia, Piramal Glass, Lanka Cement, JKH and Commercial Bank.

Acuity in their point of view indicated that as expected by them the market remained volatile with retail investors dominating the market activity throughout the week. Overall the All Share Price Index (ASPI) gained by 1.35% while the Milanka Price Index (MPI) increased by 1.16% compared to last week’s closing levels.

Acuity expect the market to remain volatile over the coming week presenting more trading opportunities to investor community. Furthermore more companies are likely to release its earnings for the 2nd quarter of 2009 in the coming weeks, thus we advise investors to carefully monitor these financial statements in order to pick attractive stocks.

- Asian Tribune -

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