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Asian Tribune is published by E-LANKA MEDIA(PVT)Ltd. Vol. 20 No. 107

Lacking investor confidence tumbles Share Market

By Quintus Perera – Asian Tribune

The HNB Stockbrokers weekly market review indicated that the market decline witnessed during the last couple of weeks accelerated as both indices lost ground during all five days of trading this week. All Share Price Index (ASPI) shed 48.2 points to close the week at 2524 points while Milanka Price Index (MPI) dropped by 82.6 points to close at 3501.4 points. Market activity remained low during the week as retailers opted to stay in the sideline due to uncertainty in the macro environment.

JKH managed to regain the top position to become the largest contributor towards market turnover this week contributing Rs.219.5 million. The share traded during the week within a range of Rs.146 and Rs.143.50 while closing the week at Rs.144. The share price during this week’s trading slipped by a marginal one percent compared to last week’s closing price.

SLT, which has remained among investor interest on a regular basis, managed to contribute Rs.61.8 million towards this week’s market turnover. SLT traded during the week within a thin rage of Rs.36.75 and Rs.36. The Counter closed trading this week at Rs.36 reflecting a 1.4 percent drop WoW.

Ceylinco Insurance saw 322,200 of its shares trading during the week contributing Rs.57.99 million towards the market turnover. While trading within a range of Rs.180 and Rs.175 the Counter closed the week at Rs.180, flat from last week’s closing price.

Dialog, the mobile telecom giant witnessed a significant 5.3 percent drop in its share price this week on thin volumes as just 513,400 shares of Dialog were traded during the week. Dialog recently made the allocation to its shareholder who had applied for the rights at a price of Rs.21 per share. The Counter traded during the week at a high of Rs.23.75 and a low of Rs.22 while closing the week’s trading at Rs.22.25.

The total market turnover for the week amounted to Rs.602 million while the average daily turnover for the week stood at Rs.120 million, down 35 percent compared to last week. Foreign investors continued to remain net buyers for yet another week amounting to Rs.310 million. Foreign purchases amounted Rs.350 million which shows a 47 percent decline from last week. Foreign sales have drastically reduced from Rs.478.8 million last week to Rs.40.8 million this week, witnessing a massive 92 percent drop. Foreign participation for the week stood at 32.5 percent of total activity.

SLT, JKH, CIC, Tess Agro and Seylan Bank (Non voting) were among the highest traded stocks for the week.

Meanwhile in their point of view the HNB Stockbrokers indicated that (ASPI) lost 48.2 points during the week while the Milanka Price Index (MPI) shed 82.6 points compared to last week’s closing levels.

Blue chips record a healthy bottom line growth

Despite high inflation and interest rates prevailed in the economy, the top ten blue chip corporates listed in the market which accounts for around 58 percent of the total market capitalization were able to record a noteworthy growth in earnings of 15 percent during the 1st 3 months of 2007. However Distilleries and DFCC performances during this period was below our expectations for the period and we expect these two companies to perform better during the remaining 9 month period. Excluding Distilleries and DFCC the growth in earnings stood at 26 percent during 1Q of 2007.

- Asian Tribune -

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