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Apr 25, 2011

Negative start in Colombo Stocks

Colombo all sector indices saw a downturn amidst continued lackluster investor participation on Monday the 25 April 2011. Decline in blue chip stocks reversed the positive momentum of Milanka Price Index (MPI) which was witnessed towards the end of last week. Most of the positive contributors were illiquid stocks.

The All Share Price Index (ASPI) closed at 7,345.48 points; dipped 1.49% through 111.34 points and the Milanka Price Index (MPI) further dropped 1.32% by 91.84 points closing at 6,855.27 during the day. Total turnover was at Rs.1.52 billion (rose 17.75%) with a volume of 39.75 million shares changing hands (fell 2.81%).

Foreign purchases dropped 1.62% to Rs.188.29 million and foreign sales fell 55.8% to Rs.116.26 million whilst the Price to forward Earnings Ratio depreciated 1.13% to 26.2 times.

Motor stocks suffered a steep fall after the Sri Lankan government said it was raising effective import tax rates on certain types of cars. Accordingly, the motor sector index itself fell 4.14% while prices of most shares of companies dealing in motor vehicles fell sharply. Lankem Developments (LDEV), which is making a 15 for one rights issue at Rs.25 each to raise almost Rs.2.6 billion fell sharply from Rs.79 in last week to Rs. 32.40 during last market hour with 1.87 million shares traded as it was the day before rights provisional allotment.

Several other crossings also happened including NDB Bank (NDB) 200,000 shares at Rs.165 and Dialog Axiata (DIAL) 2,487,200 shares at Rs.10.30 per share.

The Bank, Finance and Insurance sector was the main contributor to the market turnover due to Central Finance (CFIN) with the sector index increasing 1.03%. Central Finance (CFIN) made the highest contribution to the market turnover with two crossings of 41,000 shares at Rs.1,430. The share price increased by Rs.38.50 (2.74%) and closed at Rs.1,430. The share price has increased by 78% from mid March this year. The Diversified sector also contributed to the market turnover sector index decreasing 0.01% due to John Keells Holdings (JKH).

Piramal Glass (GLAS) announced a final dividend of Rs.0.30 per share. However, the share price decreased by Rs.0.10 (0.87%) and closed at Rs.11.40.


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