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The market rebounded following the LTTE leader Velupillai Prabhakaran's first press conference in over a decade was viewed positively, as his willingness to resolve the 19-year ethnic conflict politically instead of pursuing a military solution. The close of the week's trading was dominated by renewed foreign interest accounting for over 60% of the day's turnover of Rs. 87 million. Foreign activity in shares worth Rs. 28 million of Aitken Spence was witnessed with the buyer and seller both being foreign. A foreign purchase of 238,005 shares of Hayleys to the value of Rs. 24 million also contributed to the renewed foreign interest in the market. Foreign selling of Rs. 7 million was witnessed in JKH.

Renuka Hotels Ups stake in Royal Ceramics

The market received a boost mid week with a contribution of Rs. 88.6 million from Royal Ceramics Lanka Ltd (RCLL), 78% of the total turnover for the day, closing up 25 cents at Rs.16.25 per share. Renuka Hotels Group is believed to have been the buyer purchasing an equity stake of 10% in RCLL thereby increasing their total stake to 15%. Former Chairman of RCLL, M.M Udeshi was rumoured to be the selling party.

Trading subdued in "Avurudu Season"

However, in the early part of yet another holiday shortened week the bourse opened on Monday and recorded its second lowest turnover figure for the year at Rs.17.2 million. Trading was conducted on thin volumes with high net worth individuals and Institutions keeping away from the market through the early part of the week. The ASPI opened the week by falling 3.5 points to close at 607.6 on Monday. Thereafter it gained a point on two consecutive days to close the week at 609.7.

Positive Response by Premier

Sri Lankan Premier Ranil Wickremesinghe responded to the media on a positive note not ruling out the possibility of removal of the proscription order saying that there was now a strong chance for a political solution to the 19-year war.

The much needed foreign funding for capital investment and development that has not come by as expected due to the ruthless guerrilla warfare marred by suicide killings may be forthcoming with the success of the peace talks.

This would be critical for the stability of the Colombo Bourse, as renewed investor confidence would channel more funds back into the market. However mixed feelings were also prevalent on the brink of peace talks scheduled to commence due to the previous attempts at peace talks failing to get off the ground. 

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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