Blue chips benefit from retail rally

Monday, 1 October 2012 00:00 - - {{hitsCtrl.values.hits}}

The retailers-powered rally at the Colombo Bourse has had a positive impact on fundamentally sound blue chips with those in the Top 25 most valuable league in September offering high returns.

Though year to date the gains may still be depressed, in September the All Share Index gained by 15% and the Milanka by 17%, several blue chips have managed to do better. The fact that top stocks have gained give greater credence to the rebound in the Bourse.

This is if one ignores the rise in speculative stocks which are favoured by retailers with short-term mindset.

For example, of the Top 25, Dialog Axiata saw its share price rise by 45% in September followed by Vallibel One by 38%, Access Engineering by 36% and Commercial Leasing by 32%. Four stocks Distilleries, PLC, NDB and Sampath Bank have seen over 20% price appreciation. A further seven stocks within top 25 have seen their prices appreciate by over 10%. Premier blue chips the sold JKH has gained by 16%. The gains of some in the top 25 were despite losing in value in the last week of September.