SLT helps activity levels to improve

BOURSE: The announcement by Sri Lanka Telecom (SLT) on Tuesday that a Malaysian firm had been allowed to conduct a due diligence of the company ahead of a possible sale of a stake held by NTT helped the activity levels of the market to improve.

The price indices also continued their upward movement and analyst said the investor sentiment has considerably improved since the slump experienced by the market in the previous week.

Over 4.4 million SLT shares traded yesterday but the share closed flat at Rs.39.25 although it touched a high of Rs.45.50 earlier in the day. Analysts said that the investor interest in SLT has grown since the Company’s announcement that it gave the green light to Global Telecommunications Holdings N.V, the potential acquirer of the 35 percent stake held by NTT Communications Corporation of Japan to evaluate SLT’s business.

John Keells Holdings (JKH) also contributed to yesterday’s positive market performance with over 1.68 million shares being traded. The share price improved by Rs.2.25 to close at Rs.161. JKH and SLT contributed about 68 percent of the day’s turnover, which was recorded at Rs.653 million at the close of trading.

The All Share Price Index (ASPI)gained 20.98 points to close at 2,842.90. The Milanka Price Index closed at 3973.87 points improving by 24.33 points.

Angelo Ranasinghe of Bartleet Mallory Stock Brokers said that although the market experienced a slump during the previous week the sentiment has now changed and the upward trend could continue in the coming days.

(CK)