Market moves up

Strategic stakes changed hands in two premier blue chip companies boosting turnover, while better than expected corporate results by the island’s leading shipbuilder took the market by surprise.

The market continued to see retail participation in selective stocks in manufacturing, hotels and tourism and banking, insurance and finance sectors. There was also some activity in the telecom sector with large stakes changing hands.

The broader market moved up marginally with the ASPI gaining 5.75 points (+0.23%) while the MPI which tracks the most liquid stocks moved down by 18.35 points (+0.57%).

Turnover was boosted by large transactions in John Keells Holding, Cargills and Asian Hotels and Properties, the owners of Cinnamon Grand and Crescat Residencies.

Turnover attributed to John Keells Holdings was Rs. 292 million, to interest in Cargills was Rs. 264 million, and Asian Hotels at Rs. 41 million. Other notable transactions were in Lanka Cement, Aitken Spence Hotel Holdings and Nations Trust bank.

Reporting better than expected results for the year ended 31 December 2007 was Colombo Dockyards with an increase in bottom-line profits by 77% to Rs. 1.1 billion on back of a turnover of Rs. 8.8 billion.

Reported Earning Per Share (EPS) was Rs.16.90. Dockyards which is the largest ship builder is benefiting from a global shipbuilding boom. It’s a subsidiary of Onomichi Dockyards of Japan. A Rs.3/- dividend per share is payable by the company on March 26.

On other corporate news, Sri Lanka Telecom, the island’s monopoly fixed-wire operator has floated a Rs.100 million subsidiary SLT Vision (Pvt) Ltd, to transmit internet based TV. This is keeping in line with global trends of convergent media, seeing a combination of TV, Internet, fixed-line and mobile communication.