Colombo shares plummet on profit taking

Colombo shares on Friday following a two-day strong recovery, saw its performance plummeted somewhat with analysts saying that it was led by the lenient reigns of the small scale traders feasting on profit taking, analysts said.

Market demonstrated a significant drop at the end of the day’s trading. The All Share Price Index ASPI closed the day at 5,012.84 dropping 25.31 points and The S&P SL20 Price Index dropped 18.96 points to close at 2,828.54. The liquid Milanka Price Index M PI closed the day decreasing 56.29 points to end the day at 4,636.53, a stock broker said.

The discounted market gained positive momentum during the week surpassing the 5,000 points on ASPI again. First four days of the week enjoyed from impressive appreciations on all indices. However, market closed the week under the heavy selling pressure prevailed on Friday, he revealed.

The weekly turnover was Rs 3.81billion. The foreign investors’ participation extensively increased during the week and it concluded the week with a net foreign inflow of Rs. 1.352 billion,which is a 65.02% increase compared to the previous week’s net foreign inflow. Asiri Hospital Holdings PLC (615.6million), Asiri Central Hospitals PLC (604.5million) and John Keells Holdings (487.5million) were the major contributors for the weekly turnover mainly due to crossings recorded on those stocks.

The traded share volume for the period was 205.8million shares which is a 126.46% increase compared to the previous week. Asiri Hospital Holdings PLC was the highest traded counter with 82 million shares changing hands during the week.(DEC).

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Aug 24, 2012 (LBO) – Sri Lanka stocks closed down 0.50 percent Friday with large cap stocks trading at lower levels, brokers said.

The All Share Price Index dropped 25.31 points to close at 5,012.84 down 0.50 percent. The Milanka Index of more liquid stocks fell sharply by 56.29 points to close at 4,636.53 down 1.20 percent. The S&P index of large cap stocks fell 18.96 points to close at 2,828.54 down 0.67 percent.

Friday’s turnover was a low 265.8 million rupees.

Notable contributors to turnover were John Keells Holdings with 73.9 million rupees, Distilleries with 25.7million rupees and Commercial Bank with 21.9million rupees.

Aitken Spence PLC fell 30 cents to close at 111.00 rupees down 0.27 percent.

John Keells Holdings PLC dropped 3.80 rupees to close at 195.20 down 1.91 percent. Dialog Axiata PLC slipped 10 cents to close at 6.10 rupees down 1.67 percent.

Hatton National Bank PLC slipped 30 cents to close at 141.00 rupees down 0.21 percent. Commercial Bank of Ceylon PLC dropped 50 cents to close at 80.20 rupees down 0.62 percent.

Distilleries dropped 90 cents to close at 119.60 rupees down 0.76 percent. Colombo Dockyard PLC slipped 1.50 rupees to close at 198.40 rupees down 0.75 percent.
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In the previous bear market rallies the initial drop in index along with share prices for a day or two was attributed to profit taking. However each time this profit taking was followed by panic selling, further dragging the index and the share prices down. This happened cyclically on each previous bear market rally and there was no recovery from that point onwards until the next rally. When compared to previous days foreign selling also has increased today. I am amateur in this share market, while I see no difference of this drop from previous occasions. I like to share senior members opinion.