Losses in high caps tip down Bourse’s four-day gain

Losses in high caps mainly fuelled by Caron Cumberbatch’s announcement checked the Colombo Bourse’s four-day gain though investors remained active.

“The market paused its four consecutive day path in the green with sharp fall in prices, specifically in selected high caps including Carsons Cumberbatch (-2.74%), Bukit Darah (-4.29%) and CT Holdings (-5.59%),” Softlogic Stockbrokers said.

It said 1QFY13 performance of Bukit Darah and its subsidiary Carsons, with their prime interest surrounding palm oil, saw their earnings dip 285% & 208.9% YoY for the quarter to Rs. 26.3 and Rs. 27.3 respectively on the back of falling palm oil prices and palm production, export duty change in Malaysia and foreign exchange losses.

“This led the share prices to tumble down as the former touched its 52-week low of Rs. 710, before closing with a 4.4% dip at Rs. 714. The fall in high caps weighed on the indices as the broader index touched a low of 4,908.2 (down 51.8 points) during mid-day,” Softlogic said.

“Nevertheless, a recovery was witnessed thereafter triggered by gains made in Ceylon Tobacco (+0.65%), Capital Development & Investment Company (+4.7%) and Cargills (+1.4%),” it added.

Consequently the ASPI settled with a 28.6 point dip at 4,931.5 points, whilst the S&P SL20 index also moved on a similar pattern closing with a 22.2 points plunge.

The subdued retail investor activity was overtaken with three crossings recorded for the day, lifting the day’s turnover to touch Rs. 308 million.

Foreign investor chase in John Keells Holdings continued as the counter proceeded to register two further blocks carrying a total of 294,400 shares being dealt at Rs. 185 each. The counter closed with a marginal dip at Rs. 184.10, after touching a low of Rs. 183.50.  Banking sector favourite, Commercial Bank of Ceylon, continued to be sought after by institutions as the counter also witnessed a further 511,000 share parcel being crossed off at Rs. 98 per share. However, the counter continued remain largely flat at its close. Ceylon Tobacco continued to see interest with its price appreciating by 0.65% to Rs. 699 at close.

Renewed investor play was highlighted in Hemas Holdings (+2.27%), MTD Walkers (-7.12%) & ACL Cables (+1.33%). Buying interest continued in Sampath Bank, Aitken Spence & Distilleries in anticipation of attractive earnings growth, whilst National Development Bank also secured similar interest closing at Rs. 111.30 (up 0.54%).

Free Lanka Capital continued to witness large on board deals as it closed with a 4.8% advance at Rs. 2.10, while HVA Foods was also among the retail favourite list for the day.