The Colombo Stock Market limped into hibernation very early in the week. A low turnover and a constant decline in prices was prevalent for yet another week. A multitude of factors and a tale of woes by the retail caused this situation. The high networth investors are abstaining from any activity while some of the insitutions are vigilant observers of the current drama.
A segment of the retail players who usually take risks and create the necessary momentum and who were victims of the credit squeeze enforced by the regulators which was suddenly changed, say that many are out of the market due to the character of unpredictability now prevailing. The turnover on Friday was Rs.533 million while on Thursday it registered Rs.534 million. The All share Price Index just added a meagre 24 points on Friday to close at 6348.44.
During the four days of trading curtailed due to the Deepavali holiday, demand continued for Panasian Power, Renuka Agri Foods, HVA Foods and Free Lanka Capital Holdings which dropped to its lowest price of Rs.3.30 at one stage. In the leisure sector, Serendib Hotels was in for some support and closed at Rs.31.20.
Infrastructure Developers which moved out from obscurity last week with transactions of about 4.6 million shares at Rs.30,20 was out of the price band on Monday but got trapped again on Thursday as its price structure warranted a price band. It reached Rs 99.20 on Friday, its limit as governed by the price band. Navara Capital (Pvt) Ltd has made a mandatory offer to purchase any remaining shares at Rs.27.50.
Pelwatte Sugar Industries in which a Rights Issue was announced, had a minor decline to end at Rs 28.90.
Award winning, and always among the top, Sampath Bank has floated two subsidiaries for its venture into the Insurance and Merchant Banking field. Its closing price was fractionally higher at Rs 204.10.
JKH in which there was foreign interest earlier was at Rs.190.50, while high priced shares like J L Morisons Sons & Jones was at Rs.2755, while Colombo Pharmacy was down to Rs 1335.70.
Trade Finance & Investments commenced trading on Thursday with dealings in around 2.6 million shares, it dipped to Rs 19 but closed at Rs 20,and declined fractionally the next day.
Price Bands - were removed from Infrastructure Developers on Monday. It was imposed on Seylan Merchant Bank Warrants from October 24 to 31 but excluded on Monday because its closing price was below Rs.1. It was imposed on Infrastructure Developers from Otober 27 to November 2.
Changes in Directorates: L B Finance - K D D Perera was appointed Executive Deputy Chairman while L N de S Wijeyeratne was appointed acting Chairman:Alliance Finance - Ms R N Ponnambalam and Lt.Col.(Retd) Athula R Samarasinghe were appointed Non Executive Directors; East West Properties -
D S Karalliyade and J V Wijesuriya were appointed Directors: DFCC Bank - Dr Lalith Chandradasa was appointed Director.
Both indices were lower; the All Share Price dipping 8.50 points or 0.01% to end at 6348.44, and the Milanka also down 12.97 points or 0.01% ending at 5661.89. The turnover for the four days was 2 billion against 4 billion last week.