Market in record - breaking frenzy

BOURSE: Price indices further increased from the record levels they reached last Friday driven mainly by local investors who showed interest in fundamentally sound counters.

The All Share Price Index reached 2,874.78 points gaining 64.41 points and the Milanka Price Index (MPI) topped the four thousand mark to close at 4,001.32 points.

The MPI rose sharply by 123.1 points due to strong interest in blue chip shares. Market capitalisation further improved by Rs. 20 billion reaching Rs. 881 at the close. Yesterday's turnover was also very healthy recording over Rs. 891 million.

Analysts attributed this remarkable upward movement of the market to the increased interest of local investors. "The latest developments in the political front may have boosted investor confidence. The news that a team of opposition MPs are to cross over strengthening the Government could be seen as a positive development as far as the peace process in concerned," Indika Rajakaruna from Asha Phillip Securities said.

He said that investor interest in telecommunication sector has been driving the market. Over 2,4 million Dialog shares traded yesterday and the share price moved up by Rs. 1 to close at Rs. 29.25. Sri Lanka Telecom contributed heavily to the day's turnover with 5.7 m9illion shares changing hands. The share picked up by Rs. 2 to close at Rs. 33. 25.

Interest in the diversified blue chip John Keells Holdings also continued and the share price reached Rs.200.75 gaining Rs. 5.75 with over half a million shares being traded. Over 4.8 million Tokyo Cement (non-voting) shares also traded yesterday.

The feature of the market during the last few trading days was heavy foreign selling and increased local buying. The foreign selling during the last week was Rs. 1.12 billion and analysts said a similar trend could continue during this week too.

CK