Selling pressure weighs on indices

Wednesday, 20 April 2011 00:00 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday remained depressed with brokers and analysts pinning it to profit taking as well lack of strong sentiments.

The benchmark ASPI and the more active MPI dipped by 0.96% and 1.33% respectively sharply than they did on Monday. Turnover was a below average Rs. 1.39 billion.

“Selling pressure across the board dragged the indices lower on thin volumes,” John Keells Stock Brokers said.

“Indices took a downturn amidst selling pressure creeping in. Profit taking was witnessed in the stocks which made gains in previous few weeks,” NDB Stockbrokers added.

It said that blue chip stocks continued to decline amidst dull foreign participation whilst profit taking was witnessed in Bairaha Farms, and Brown & Company. Furthermore renewed interest was witnessed in illiquid stocks such as Printcare and Arpico Finance etc.

Asia Wealth Management said the market continued on a slow pace despite the end of the holiday season, with the indices losing grounds substantially.

The new entrant Free Lanka Capital continued grabbing retail and high net worth participation, leading the counter to top the list in terms of volume of 16.37 million though the price dipped by 20 cents to close at Rs. 5.60. Bairaha Farms saw similar interest with counter seen a 80,000 mid-sized parcel crossed at Rs. 480.0. Brown & Company witnessed mixed investor sentiments during the day, whilst Central Finance continued with its run involving 35,900 shares supported primarily by high net worth and retail participants Asia added.