Bourse booms to five month high turnover of Rs. 6.3 b

Friday, 19 August 2011 05:28 - - {{hitsCtrl.values.hits}}

Heavily traded and high gainers Colombo Land, HVA Foods and Multi Finance get entangled in SEC price band

A direct result of regulator supported credit move and a rebound in investor sentiment, activities in the Colombo stock market boomed to record a turnover of Rs. 6.5 billion, the highest ever in five months.

Volume of turnover was 197 million shares though less in comparison to Wednesday’s 205.4 million, centred on booming prices spiced by heavy dose of day-trades.As evident on Wednesday, more investors focused largely on speculative stocks which some described as previously “under-performing” counters.

Incidentally the top two turnover contributors Colombo Land and HVA Foods (biggest gainer percentagewise of 77%) fell under SEC’s price band whilst Multi Finance the sixth biggest gainer percentage wise was the other security.

Turnover at Rs. 6.4 billion was the highest since 4 March and way above year to date daily average of Rs. 2.7 billion. Overall the All Share Index gained by over 16 points whilst MPI dipped by 30 points.

Foreigners were net buyers as well. “Despite starting in the green, market ended on a mixed note with profit taking visible on selected counters. Most of the speculatively driven counters that were traded registered high price volatility, fluctuating over a wide window. Activity levels continued to remain strong with turnover levels being mainly dominated by the strategic deals that took place in the market,” Arrenga Capital said.

“The ASPI edged higher amid high turnover levels, driven by heavy retail speculative interest on CLND and HVA,” John Keells Stock Brokers said.

“Indices ended the day on a mixed note with the ASPI rising while the MPI declined. Speculative buying was seen in Citrus Leisure and HVA Foods while Colombo Land and Development continued to attract interest. Profit taking in The Lanka Hospital Corporation and East West Properties was witnessed,” NDB Stockbrokers said.

Land & Property sector was the main contributor to the market turnover (due to Colombo Land & Development), and the sector index increased by 0.05%. Colombo Land & Development was the main contributor to the market turnover. The share price increased by Rs. 3.10 (5.02%) and closed at Rs. 62.00. Beverage, Food and Tobacco also contributed significantly to the market turnover (due to HVA Foods) and the sector index decreased by 1.11%. The share price of HVA Foods increased by Rs. 14.30 (76.88%) and closed at Rs. 33.60.

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