It was a case of firing on all cylinders at the bourse, as the broker provided credit issue was relaxed. A wave of confidence engulfed the market and buying spread all round, resulting in the 2 indices gaining an astonishing 200 points in each case.
Some of the High net worth individuals who were spectators for some time entered the market providing a much required boost in sentiment.
However this effervescence fizzled out the next and a slight dip in the indices were seen much to the dismay of many. A bull run was expected to continue but various factors reversed the trend. On analysing it was found out that the relaxing on credit will help the big brokers while creating a disadvantage for the other brokers. Another factor was that some of the big players who got burnt their fingers with the recent IPO.s, and those who lost due to brokers forced selling, were out of the market and say that they do not wish to face a similar plight again.
Market activity was more pronounced this week bolstered by some of the High net worth Investors playing an active role, depicted by dealings in NDB,Lanka Hospitals,Colombo Land,and PC House. Institutional activity was visible in Vallibel One,Odel and JK Holdings. From this group Lanka Hospitals achieved a peak level of Rs 108.30 on Thursday, but was on the retreat ever since, but PC House continued to evoke strong market support and was on a steady upside establishing a peak of Rs 23.40 for the week. On Thursday a massive turnover of Rs 6394 was registered, indicating overall confidence at the bourse.
In the other basket of active stocks, East West, Seylan Developments Pan Asia Power, HVA Foods and Textured jersey were in the front line. Pan Asia Power was in extensive demand while HVA Foods was on a winning streak reaching Rs 36.10 on Friday amidst good support. An element of satisfaction was brought in by Central Finance and Investments Ltd, when it traded just above the IPO price breaking the hoodoo covering the recent issues, some of which like Softlogic Holdings still in a R.I.P state. Textured Jersey in which its private placement was at the same price of its IPO, however, is fractionally below its IPO price.
The turnover for the week was Rs. 19.4 billion, a very huge improvement over the Rs 15 billion last week. Both indices were also better poised, the All Share Index gaining 116.66points or .1% to close at 6949.72 while the Milanka was also better by 135.05 points or .2% closing at 6321.76