Turnover soars helped by mega NDB deal

Channa KASTURISINGHE

BOURSE: THE market turnover exceeded Rs. 1.6 billion yesterday mainly due to a crossing of 10 percent stake of National Development Bank (NDB) between two foreign parties.

Over 5.4 million shares of the NDB was traded yesterday of which a parcel of Rs. 5.2 million shares which constituted a 10 percent stake of the Bank was believed to be sold by Gold Quest, the international pyramid scheme operator, to another foreign party at Rs.205. However, the share ended at Rs. 223 down by Rs.4 compared to the previous day.

Another parcel of 141,000 NDB shares also traded as a crossing between two foreign parties and the NDB to contribution to total turnover of the market was 70 percent.

Yesterday's turnover recorded at Rs. 1.6 billion of which Rs. 1.1 billion came from the NDB. Both indices gained yesterday due to buying interest shown by retail investors, analysts said.

The All Share Price Index (ASPI) moved up by 13.42 points to close at 2,261.23 points and the Milanka Price Index (MPI) closed at 3,091.91 points up by 20 points. There were 22,588,433 trades yesterday. The market capitalisation increased by Rs. 4 billion from Rs. 682 billion to Rs.686 billion.

Overseas Realty, Reefcomber, Ceylinco Insurance, Dialog, Sri Lanka Telecom, The Finance were among other highly traded stocks yesterday.

Analysts said that several companies have shown good corporate results during the last financial year and the positive news from the political front too has helped the market activity during the past few weeks. "Investors are now showing interest in so many under valued stocks such as The Finance, ACL Cables and Ceylinco Insurance.

There is renewed buying interest on shares like LIOC and Sri Lanka Telecom. So we can see a lot of liquidity in the market and we expect this trend to continue unless something drastic in the political front happens," an analyst told the Daily News.

Although the market gained yesterday the stocks closed weaker on profit-taking on the previous couple of days. Stock brokers said the downward trend was due to investors were more keen on profit-taking and investors waiting to see the progress of the peace process.

The net foreign inflows were Rs. 18.7 million with foreign purchases registering Rs. 1188.6 millions and foreign sales registering Rs. 1169.9 million during the day.

The top five gainers were ACL (N), LB Finance (W), Ceylinco Ins. (N), Kandy Hotels 1/- (N), The Finance Co. (N). The top five losers were Industrial Asph. (N), Tangerine (N), Vanik Incorp Ltd. (N), Soy Foods (N), Kegalle (N).