Forced selling dips market

The Colombo bourse trading formed a so called Hammer trading pattern today with ASI losing almost 35-40 index points range during majority of trading time while trading closed marginally negative to end the day. The Hammer is a bullish reversal pattern which forms during a downturn.

Drop in the market is likely to be accounted by force selling activity warranted in terms of SEC directives.

ASI lost 15.14 points (-0.21 percent) to close at 7,192.72 while highly liquid MPI dropped slightly by 5.62 points (-0.08 percent) to end trading at 6,811.78.

Daily turnover dropped to Rs 1.2 million.

Central Finance Plc (Rs 158.7 million) emerged as the top contributor to the turnover. Furthermore high turnover was witnessed in counters such as Union Bank Plc (Rs 119.6 million) and Hatton National Bank Plc (Rs 108.8 million). In addition Union Bank Plc (UBC) was the most traded counter in the day. UBC closed at Rs 35.90, down Rs 2.50. Lanka Securities