Market declines

Broad-based price declines were seen on the Colombo Stock Exchange with the benchmark ASPI declining by 38 points (-1.5%) to 2520 and the MPI declining by 57 points (-1.8%) to 3008. The market's decline was driven by market heavyweight Dialog Telekom's share price losing 75 cents (5.6%) to close at Rs 12.75 following a 54% reduction in the company's Q1 2008 profits.

Dialog's drop accounted for approx. 19% of the ASPI's decline, and 41% of the MPI's decline.

The notable announcement for the day was from Carson Cumberbatch & Co (CARS), which announced a 15:1 share split, a 1 for 20 bonus issue, and a dividend of Rs 3.00 per share on the existing ordinary shares. CARS closed at Rs 4,910.50. Renuka City Hotels (RENU) reported a 78% decline in net profits for the year ended March 2008 to Rs 113 million. Prior year profits were boosted by other income of Rs 503 million, mostly realised capital gains on its equity portfolio.

Colombo Dockyards (DOCK), on which First Guardian Equities has a buy recommendation, reported an increase of 50% in net revenue to Rs 2.9 billion for the first quarter ending March 2008.

DOCK's profits increased 22% to Rs 244 million.

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