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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2740

Foreign participation improves the market as positive sentiments gather Positive peace news to revive investor hopes

By Quintus Perera – Asian Tribune

Colombo, 04 October, ( HNB Stockbrokers indicate, both indices showed significant improvement this Week, as the market seemed to be buoyant and major improvements showed up during the latter part of the week.

Upbeat market sentiments were witnessed during the week, amid hopes of peace talks to commence as the government receiving a positive response from the LTTE.

The All share Price Index (ASPI) closed at 2383.3 points up by 54.2 points or 2.3 percent Compared to last week, while the Milanka Price Index (MPI) closed at 3006.2 points up by 94.6 points or 3.25 percent compared to last week.

The major contribution towards turnover this week came from a strategic trade, which saw 4.7 million of Ceylon Oxygen shares being traded on Monday. The trade, which amounts to, a 71 percent stake of the company went through between a price range of Rs.242 and Rs.241.75 per share, contributing Rs.1.16 billion towards weekly turnover. The selling party was foreign based company Yara International ASA, while the buying party was reportedly Actis.

Meanwhile counters LIOC and Caltex saw a resurge in interest this week. LIOC counters managed to capture investor appetite amid reports of a possible early settlement of subsidy dues owed to LIOC by the government, while a reduction in global oil prices also saw the company benefiting financially. The share price of the counter appreciated by 17.9 percent, from Rs.26.50 per share recorded during the close of trade last week to close at Rs.31.25 per share
this week. During the week the counter touched a high of Rs.32.50 per share and a low of Rs.26.25 per share, contributing a sizable Rs.250.5 million towards weekly turnover.

Around 8.3 million of the counter traded for the week becoming the highest traded stock for the week, with significant foreign buying being witnessed.

Meanwhile interest on the Caltex counter saw its share price peaking at Rs.83 per share for the week. It should be noted that Caltex like LIOC would be gaining from the drop in global oil prices, with input costs falling. Clatex counters were seen trading sizably during last week as well, however the quantities traded this week was significantly higher than what was experienced last week. Last week 0.9 million of Clatex counters traded compared to 4.2 million counters traded this week.

The share price improved by 7.5 percent compared to last week closing at Rs.82.75 per share on Friday. Contribution towards weekly turnover amounted to Rs.341.4 million, with the counter trading between the range of Rs.83 and Rs.77 per share. Significant foreign interest was also witnessed in the JKH counter with 2.7 million shares trading this week. The conglomerate counter was the second highest contributor towards total turnover this week, contributing Rs.358.7 million. JKH also witnessed its share price rise modestly this week rising by 2.1 percent closing on Friday at Rs.135 per share.

During the week the counter traded at a high of Rs.136.75 per share and a low of Rs.131.25 per share. Meanwhile another diversified sector counter James Finlays saw 1.3 million of shares trading through a foreign to foreign trade. Contrary to the movement witnessed on the counters highlighted above, James Finlays was amongst the top looser this week with its share price falling by 21.4 percent to Rs.165 per share this week. The counter however managed to contribute notably towards turnover for the week, contributing Rs.195.1 million.

Speculative counter Touchwood lost momentum this week, amid the price of the counter slipping by 5.8 percent during the week. The counter closed on Friday at Rs.109.25 per share, while during the week it traded within a broad range of Rs.120 and Rs.105 per share.

Touchwood contributed Rs.95.7 million towards weekly turnover, remaining within the top 10 contributors towards total turnover for the week, while 0.8 million of the counter traded this week.

Activity levels picked up notably this week with total turnover amounting to a sizable Rs.3.3 billion. Average daily turnover amounted to Rs.669 million. Excluding the one off strategic
transaction of Ceylon Oxygen, which was the highest contributor towards this week, the turnover amounted to Rs.2.2 million, resulting in an average daily turnover of Rs.437.9 million.

A significant net foreign out flow of Rs.892 million was witnessed this week, mainly driven by the foreign sale of Ceylon Oxygen counters on Monday. Foreign purchases amounted to Rs.589.3 million, showing a significant 196.4 percent gain from last week. Foreign sales meanwhile amounted to Rs.1.48 billion, while excluding the Ceylon Oxygen trade it stood at Rs.323.6 million. Foreign participation this week stood at 30.9 percent of total activity, which was an improvement from last week’s 14.4 percent Lanka IOC , Tokyo Cement (Non Voting), Vallibel, Ceylon Oxygen and SLT were amongst the top traded stock for the week volume wise.

- Asian Tribune -

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