Deals on premier blue JKH yesterday boosted the Colombo stock market to recover from a dismal position of six month low whilst fresh buying also returned.
Over 6.8 million shares of JKH traded for Rs. 1.4 billion with significant foreign play.
Of the traded quantity a block of 6.6 million traded at Rs. 207 which was a foreign to foreign transfer. A few relatively new foreign funds also bought some shares whilst on the selling side were Employee Trust Fund (ETF) and a few others. JKH hit an intra-day high of Rs. 215 before closing at Rs. 214.70, up by Rs. 7.90.
JKH as well as a few other stocks performing well saw both indices of the CSE closing on the up whilst turnover was Rs. 2.5 billion.
“Indices were volatile during early trading as the selling pressure prevailed. However, the negotiated deals pertaining to JKH (between foreign parties) coupled with some Banking sector counters triggered the buyers to help close the indices in green,” NDB Stockbrokers said.
Diversified sector was the main contributor to the market turnover (due to John Keells Holdings), while the sector index increased by 1.42%. John Keells Holdings was the main contributor to the market turnover with six crossings (6,662,600 shares at Rs. 207). The share price increased Rs. 7.90 (3.82%) and closed at Rs. 215.
Banks, Finance and Insurance sector also contributed significantly to the market turnover (due to Commercial Bank). The sector index increased 1.19%. The share closed at Rs. 259.80 having gained Rs. 5.60 (2.22%).
Renewed interest was witnessed in Land and Property sector counters such as Colombo Land and On’ally Holdings. The share price of On’ally Holdings increased by Rs. 34.10 (35.74%) and closed at Rs. 134. The latter saw the SEC imposing the 10% price band with effect from 6 July 2011 to 12 July 2011 (Both days inclusive).
Reuters also said stock market recovered from a six-month low on Tuesday led by 3.8 percent rise in heavyweight John Keells Holdings with foreign inflow for the first time in 10 sessions as institutional investors bought battered shares.
Sri Lanka’s main share index gained 0.68 percent or 46.05 points to 6,862.79. Monday’s close was its lowest close since 6 January.
Since 1 June, the bourse had shed 7.1 percent mainly due to forced selling, in line with the policy of the regulator Securities and Exchange Commission (SEC) to recover credits, aiming to eliminate all credit dealing by end 2011.
Over 6 billion Sri Lankan rupees is locked up in two recent initial public offerings. On Monday, the SEC’s Director General Malik Cader said there may be over 30 billion rupees of liquidity locked in private placements and IPOs since February this year.
The day’s turnover was 2.51 billion Sri Lanka rupees ($22.92 million), slightly above last year’s average of 2.4 billion, but below this year’s daily average of 2.82 billion.
The bourse is still up 3.42 percent so far this year. It was the top performer in the Asia-Pacific in 2010 and 2009 with 96 percent and 125 percent returns, respectively.
Foreign investors were net buyers of 28.3 million rupees worth of shares on Tuesday, the first inflow in 10 sessions, and they have sold a 7.54 billion rupees in 2011 after a record 26.4 billion in 2010.
Traded volume was 47.4 million, against a five-day average of 63.1 million. The 30-day and 90-day average trading volumes were 179.1 million and 103.2 million, respectively. Last year’s daily average was 67.9 million.
The rupee closed unchanged at 109.49/50 a dollar as a state bank defended the local currency by selling dollars at 109.50 amid heavy importer demand for the greenback, dealers said.