Anticipated kick-start week & not sustained
The relaxed broker credit rules announced by the SEC on Monday failed to kick start the Colombo bourse yesterday although turnover was reasonably good. Both indices closed down with gains recorded during early morning trading not sustained, brokers said.
The market posted a turnover of Rs.1.39 billion, up from the previous day’s Rs.1.17 billion, with the All Share Price Index down a marginal 4.73 points (0.08%) and the Milanka down 33.68 points (0.67%) with 90 gainers against 104 losers.
"The market was back to base with the much anticipated announcement on broker credit not making much of a difference," Prashan Fernando of Acuity Stockbrokers said. "It was up in the morning but couldn’t hold those gains."
Asia Asset Finance was the top business generator closing Rs.2.70 up at Rs.8.50 with nearly 45.8 million shares traded between Rs.6.30 and Rs.8.70 contributing the day’s top turnover of Rs.365.9 million.
ERI followed gaining 60 cents to close at Rs.34.20 on nearly 6.2 million shares done between Rs.34.10 and Rs.37.90 contributing Rs.218.1 million to the day’s business volumes.
Brokers said there appeared to be continuing foreign selling on Commercial Bank, Tokyo and JKH all of which demonstrated volume and price declines.
ComBank which hit Rs.104 during early trading closed 10 cents down at Rs.100 on over 0.8 million shares done betwe4en Rs.100 and Rs.104 while Tokyo (non-voting) closed 30 cents down at Rs.27.90 on slightly over 1.9 million shares done between Rs.27.90 and Rs.29.50. JKH was down Rs.2.10 to close at Rs.162 on a little over 0.1 million shares done between Rs.162 and Rs.168.
"Traders who bought in the last two days planning to sell on anticipated market gains following the SEC announcement sold off anyway," a broker said.
He noted that the stocks that showed price gains and volume were speculative counters like Asia Asset Finance, ERI and HVA Foods. Colombo Land also demonstrated volume (nearly 0.8 million shares) but closed 90 cents down at Rs.53 on a trading range of Rs.53 to Rs.58 with gains made during early trading not sustained.
Panasian Power closed flat at Rs.4.20 on nearly 6.8 million shares done between Rs.4.10 and Rs.4.50 as did Blue Diamonds which closed at the previous Rs.8.40 level on slightly over 2.7 million shares done between Rs.8.30 and Rs.10. Regnis peaked at Rs.382 but closed just Rs.1.80 up at Rs.360 on l71,200 shares traded between Rs.340 and Rs.382.
Brokers said that there was selling pressure on the market and once that is done they were hopeful that the market would move up slowly.
There were four crossings yesterday – 452,800 ComBank at Rs.100, two parcels each of 600,000 of ERI at Rs.34 and 1.2 million Tokyo X at Rs.28.
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