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May 27, 2011

Settlement pressure halts indices in Colombo

Colombo Stock Indices dropped amidst selling pressure witnessed in speculative stocks which saw rapid gains recently. Approach of the settlement dates could be the reason according to brokers. The decline in the more liquid Milanka Price Index (MPI) was controlled to a certain extent with the investor interest shown in some blue chip stocks.

The All Share Price Index (ASPI) closed at 7,419.44, down 0.37 percent (27.25 points) while the more liquid Milanka index fell 0.19 percent (12.97 points) to close at 6,865.48 points. Turnover was at Rs.3.61 billion (fell 10.44%) with a volume of 167.24 million shared traded (down 24.15%) during the day. Foreign purchases fell 3.42% to rs.274.73 million and foreign sales also dropped 25.47% to Rs.233.07 million. Price to forward Earnings Ratio (PER) fell 0.38% to 26.5 times.

Swarnamahal Financial Services (SFS), which began trading Thursday, closed at Rs.44 with 682,600 shares traded. The stock was listed at Rs.11.40 opened at Rs.100. Chilaw Finance (CFL), which also began trading Thursday, closed at 30.60 rupees, up 19.60 or 178 percent. The stock was listed at 11 rupees, opened at 30 rupees and hit a high of 60 rupees.

The trades were in contrast to the listing of Senkadagala Finance (SFCL) which has not been traded since getting listed in March 2011.

Several crossings were done including John Keells Holdings (JKH) 420,000 shares at Rs.300 per share, LB Finance (LFIN) 450,000 shares at Rs.193, Hatton National Bank Non Voting (HNB.X) 400,000 shares at Rs.130 per share and Seylan Bank (SEYB) 773,400 shares at Rs.7 4 per share.

Bank, Finance & Insurance sector was the main contributor to the market turnover due to Janashakthi Insurance (JINS)), while the sector index decreased by 0.20%. Land & Property sector also contributed to the market turnover due to Colombo Land (CLND), while the sector index decreased by 2.41%. Colombo Land (CLND) was the main contributor to the market turnover. The company witnessed selling pressure after making rapid gains over the last couple of days. The share price decreased by Rs.3.26 (8.36%) and closed at Rs.34.50. Price appreciation of John Keells Holdings (JKH) helped MPI to outperform ASPI.


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