Locals chase telecom sector shares
Channa KASTURISINGHE
BOURSE: The market moved up remarkably yesterday mainly due to locals
who showed interest in the telecom sector.
Contributing to the bulk of the turnover, over 4.6 million Dialog and
4.7 million Sri Lanka Telecom shares traded yesterday and brokers said
both high net worth and retail local investors had their eyes on the
telecom sector.
Local interest in the diversified blue chip John Keells Holdings (JKH)
was also high with over 1.1 million shares being traded.
Heavy buying interest into blue chips resulted in the Milanka Price
Index (MPI) moving up by an impressive 3.59 percent and the All Share
Price Index (ASPI) too rose sharply by 2.47 percent.
The ASPI closed at 2,777.73 points gaining almost 67 points and the
MPI gained 131 points to close at 3,785.92 points.
The sharp upward movement of the indices helped the market
capitalization to increase by over Rs. 20 billion to reach Rs. 851
billion at the close. Yesterday's turnover was also very healthy
reaching Rs. 1.04 billion.
Reflecting the growing local and foreign interest, Dialog share price
continued to move up and yesterday it reached a high of Rs.28 before
closing at Rs.27.75 which was an increase of Rs.2.25 compared to the
previous day. SLT share price also increased to Rs. 29.
S. Umasudhan of SC Securities told the Daily News that the growth
potential of the country's telecom sector coupled with strong financial
performance of the two listed companies has attracted the attention of
both local and foreign investor.
Manjula Kumarasinghe of Asha Phillip Securities said that the active
participation of retail investors was an encouraging sign as the market
was mainly driven by foreign investors during the past few weeks.
The sharp upward movement of the indices helped the market
capitalization to increase by over Rs. 20 billion to reach Rs. 851
billion at the close. Yesterday's turnover was also very healthy
reaching Rs. 1.04 billion.
JKH too contributed to the high turnover level yesterday and market
sources said there was considerable foreign selling of the share.
There were rumours that Gold Quest which had been buying heavily into
to the stock was selling in smaller quantities which were picked up by
some locals.
The share was up by Rs.1 to close at Rs.191. Yesterday's net foreign
outflow was about Rs. 230 million.
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