Business Times

Bourse moves from despair to hope

Stockmarket Review
By Elton P Ebert

After a prolonged spell of desperation and despair, a welcome change on Wednesday and Thursday brought fresh hope to many investors, although a few Fund Managers and brokers would have liked the market to shrink further with the earnings multiple falling below 10 times, to bait fresh foreign funds.
The ASI was on top gear on Thursday when it jumped 255 points due to widespread activity not seen this year. It continued the next day at a steady pace, with a massive turnover of Rs. 2 billion, but slipped back due to some players resorting to the safety valve of quick profit taking.

Those who risked their capital when the ASI was very much in discomfort around the 5000 mark were afforded the opportunity of booking ample profit just before the extended weekend. Rights issues were announced by Pegasus, Hayleys MGT and Softlogic Capital, and a few more are to follow. AgStar Fertilizers Voting & Non-voting shares commenced trading on Thursday. Voting shares ended the day at Rs 17.90, but shrank to Rs.17.40 the next day.

The company made a private placement of 125 million shares of Rs.8 each collecting a billion rupees last July. Foreign interest was emphatic in the very lucrative Commercial Bank where over 11 million shares were transacted on Tuesday providing a boost to the days' turnover of Rs. 2.4 billion. A further 10.7 million shares were dealt on Friday. Besides the widespread activity by the retail segment, institutions were also active in stocks like JKH, SLT and the high priced but very profitable Ceylon Tobacco. Over a million shares in the highly diversified Aitken Spence were transacted on Thursday. Free Lanka Capital Holdings which sank to its lowest level of Rs.1.70 this week was unusually active on Wednesday when over 6 million shares were transacted.

The usual group of Panasian Power, Renuka Agri Foods, Blue Diamonds and Environmental Resources remained in the same vein this week too. Sampath in which a dividend and a share scrip is accruing was up at Rs.180 but ended the week at Rs.178.10. Swarnamahal Financial Services was at Rs.177 while Acme Printing & Packaging which was under the price band until Thursday moved up on Friday to Rs.26.50. Regnis Lanka dipped to Rs.312, as did E B Creasy to Rs.1015. A price band was removed from Acme Printing & Packaging on 17th February.

Changes in directorates: Onally Holdings PLC - P.A.I. Sirinimal Perera was appointed independent director and Chairman on 31st January; Mercantile Investments PLC - Viraj Perera and Sanjaya Bandara were appointed independent Non-Executive Directors on 9th February; Softlogic Capital Ltd - S.N.P. Palihena was appointed an independent director on 1st February; Aviva NDB Insurance PLC - Anura Siriwardena was appointed Director on 8th February; People’s Merchant PLC - Sarath Rajapakse was appointed a Director on 14th February.

The turnover for the week was encouraging at Rs. 8.2 billion as against Rs. 3 billion for the earlier 3-day week. Both indices were lower, the All Share Index dropping 31.82 points or 0.2% to end at 5285.17 while the Milanka ended 79.71 or 0.5% lower at 4549.43

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
State banks face cash crunch
SriLankan invests approx. Rs.150 mln in Mattala
Middle East airlines hit by soaring oil prices
Foreign media ruins Maldives' image as a safe haven for tourists
SEC agrees to some concessions for brokers
Reclaiming the sea
Business Tiems (BT) Poll on rising fuel prices
Comment - Budget bluffing and bank borrowing
CEB, CPC could lose Rs 100 bln this year
Sharp dollar gains, just a temporary phenomenon : CB
Commercial banks should be aware of excessive credit growth
Rupee depreciation follows the ‘Dutch disease’
Household budgets, company costs rise sharply - polls show
EU in Euro 2 mln grant in “Greening Sri Lanka Hotels”
600 vessels fishing illegally in SL at any time : Expert
Lankan tea smallholders facing major crisis
77,000 poor Lankans to get access to sanitation services
Chamber Business Development Consultants Group launched in Vavuniya and Kilinochchi Districts
BASF and Finco promote sustainable construction solutions
Number of Lankan job vacancies fell by 16% in 2010 : Survey
Sri Lanka's first 'green' warehouse launched by Global Park
Many tax queries and concerns raised at top seminar
Richard Pieris group operating profits rise
Prof. Jayasinghe wins "Young Scientist Award for Excellence in Research - 2010"
Bourse moves from despair to hope
Mihin touchdown on low cost routes
MTD Walkers expands into stainless steel fabrication
North-East youth want role in Sri Lanka’s development: WB
Ceylinco directors ordered to work out a new GK re-payment plan
NMK Holdings introduces modern process for the production of copra
Currency fund brings international funding to supplement local sources
Sri Lanka’s forex – a catch-22 situation
Seylan Bank posts best fourth quarter results Rs1 billion net profit for 2011
Losses at Hayleys’ tea unit, Talawakelle Tea Estates
Hayleys reports record 9-month net profit
Chemanex subsidiary Chemcel starts new plant
Hemas to set up more hospitals in key towns
Call for better system of University education
CSE sends Valentine present to stockbrokers

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2012 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution