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CSE - record high

By Chandani Jayatilleke and Ravi Ladduwahetty

Spurred on by the Government-LTTE peace talks which began in Thailand yesterday, the Colombo bourse recorded the region's best performance with the All Share Price Index (ASPI) reaching a five-year high of 807.97 points and Milanka Price Index (MPI), an all time high of 1386.01 points.

This was in a backdrop in which all Asian stocks dipped, barring Japan which was closed for a holiday.

A salient feature in yesterday's trading on the Colombo Stock Exchange was that the market capitalization in equity rose by Rs. 2.2 billion within a single trading day, up to Rs. 164.2 billion from Friday's Rs. 162 billion. Total turnover for the day was Rs. 205 million of which Rs. 37.3 million was in foreign purchases.

Continuing the upward trend from last week, the ASPI recorded a 10.97 percent increase while MPI was up 23.5 per cent, market analysts told the Daily News.

Contrary to Colombo's bull run, Asian stock markets, apart from Japan which was closed for a holiday, declined, a Singapore datelined Reuters report said. Hong Kong, Seoul, Taiwan and Singapore bourses all wallowed in negative territory.

Market analysts attributed the Colombo bourse's success to the peace talks. They said that the upward trend during the past few weeks is still intact and the future will largely depend on the outcome of the peace process. Referring to retail investors in the market, they said as foreigners actively engaged in trading, retailers too have gained confidence in the bourse.

Among the best traded stocks were the hotels, manufacturing and diversified holdings. Of the sectoral indexes, the banking index moved up from 1938 to 1951, up 13 points. The Beverage Food and Tobacco Index rose by 18 points from 961 to 1979. The Hotels Index also rose by 19 points from 384 to 403. The Investment Trust rose by 279 points from 2311 to 2590 points. The Motor Index also moved up 7 points from 486 to 493. Diversified Holdings also rose by 2 points from 196 to 198.

It was rumoured that Sri Lankan born US investor Raj Rajaratnam has purchased Rs. 19.9 million worth John Keells Holdings shares in a total sales proceeds of Rs. 50.2 million. The JKH share closed in at Rs. 76.50, up Rs.1.50.

Of the other foreign purchases, there was Rs. 11.9 million slab of Lanka Lubricants shares valued at Rs. 13.5 million. LLL shares closed in at Rs. 119, up 25 cents.

Of the top five quantities volume wise, there were 3.4 million Asian Hotels Shares which yielded Rs. 37.3 million. The shares closed at Rs. 11.25, up Rs. 2. The next was 1.1 million Printcare shares sold for Rs. 12 million which closed in at Rs. 11, up Rs. 1.50.

A slab of 534,000 NDB Bank shares also yielded Rs. 10.2 million. The share closed at Rs. 19 down 25 cents. There was also a 443, 000 share stake of the Light House Hotel which went for Rs. 5.9 million. The share closed in at Rs. 13.75, up Rs. 1.75. There was also a Rs. 3.1 worth sale of Nations Trust Bank (NTB) shares as well.

Of the ten top gainers, Ceylon Guardian went up Rs.25 to Rs. 150. Ceylon Hotels Corporation rose by Rs. 10 to Rs.110. Renuka Hotels rose Rs. 8 to Rs. 60. Alliance Finance rose Rs. 7.25 to Rs. 55. Aitken Spence rose by Rs. 5 to Rs. 130. CIC (Non voting) rose by Rs. 5 to Rs. 75. Commercial Bank (non voting) shares rose Rs. 4.75 to Rs. 154.75. Sigiriya Village rose by Rs. 2.50 to Rs. 27.50.

The Matara unit of the stock market also recorded a turnover of Rs. 12 million.

Commenting on yesterday's performance of the bourse, Chairman of the Stock Brokers Association Devapriya Ellepola told the Daily News last night that there was selective buying in anticipation of a positive outcome of the peace process that began yesterday which would have a positive impact on the economy as a whole.

The de-escalation of the war and the peace process would eventually lead to economic recovery. European Union's External Relations Commissioner Christopher Patten has assured Prime Minister Ranil Wickremesinghe that there will be more assistance from donor concerns with the progress of the peace talks. This will have positive impacts outlook on the market, Ellepola said.

He expressed optimism that more investments will be drawn to Sri Lanka following Prime Minister Ranil Wickremesinghe's meetings with US Fund Managers and investors during the New York Investors' Forum this week.

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