Market up marginally

Colombo stocks were up marginally with the ASPI gaining 1 point (+0.1%) to end at 1,526 while the more liquid MPI was up 6 points (+0.4%) to 1,692.

Turnover as usual was driven by a small number of large transactions, with John Keells Holing accounting for the bulk of it. JKH saw Rs 30.1 million worth of transaction while the share closed down at Rs 57.00. Ceylinco Insurance saw Rs 10 million of turnover with the share closing down at Rs 185.50.

Total business from the equity market for the day was Rs 76.3 million.

Global markets were still reacting to the bad news emanating from hedge fund scandal involving former NASDAQ chairman Bernard Madoff. Madoff's hedge fund had been running a Ponzi type scheme, paying out rich dividends to investors using money obtained from new investors, with total loss to investors estimated at US$50 billion.

Some of the high profile names that had to take loses included HSBC, Fortis and Bank Santander.

The Federal Reserve Bank of the US brought inter bank rates to a range of zero to 0.25% to pump more liquidity into capital markets, which saw the Nikkei up half a percent and the Hang Sang up 2%.

Source: First Guardian Equities