Hotel sector boosts market

Hotel sector stocks rallied yesterday on retail interest though the wider market was up marginally.

The ASPI gained 2 points to close at 2,511 while the MPI gained a point to end at 2,844. On the other hand, the Hotels and Travels sector gained 1.5 percent on turnover of Rs 62 million.

Royal Palms Beach Hotel was up 11 percent from Wednesday's closing to end at Rs 70.75. The share hit a life time high of Rs 80.00 in the course of the day. Browns Beach Hotel also saw a life time high of Rs 65.00 for the day and it closed at Rs 64.50, a gain of 5 percent. The other hotel sector shares that moved up considerably were Tangerine Beach Hotel, up 8 percent to close at Rs 58.00 and Hotel Reefcomber, up 7 percent to Rs 1.60.

Of the hotel groups, Aitken Spence Hotel Holdings closed at Rs 165.00, up Rs 5.00 (+3 percent), Asian Hotels and Properties closed at Rs 56.75, up 75 cents (+1 percent) and John Keells Hotels closed at Rs 13.00, unchanged from Wednesday's close. Ceylon Hotels gained 50 cents to close at Rs 21.50, gaining 2 percent.

Major Asian markets bounced back on the news that the worst of the recession in Europe and the US may be over, with the Bombay Sensex gaining 3.5 percent for the day, the highest in the region. Source: First Guardian Equities