Bourse bounces to green terrain

The Colombo bourse ended its losing streak yesterday with a significant bounce back to the green terrain. However the bounce back was supported by thin turnover.

ASI jumped by 103.84 points (+1.4 percent) to close at 7,317.17 while more sensitive MPI gained 56.02 points (+0.84 percent) to end trading at 6,747.35.

Market turnover was low at Rs 1.6 billion.

Lankem Ceylon Plc (Rs 157.0 mn) was the top contributor to the turnover followed by Nation Lanka Finance Plc (Rs 122.0 mn) and Aitken Spence Hotels Plc (Rs 57.5 mn). Nation Lanka Finance Plc was also seen to be actively trading in the day.

In addition counters such as Alufab Plc and Radiant Gems International Plc attracted notable investor interest during trading hours. In terms of the SEC directive, the 10 percent price band has been imposed on ALUF.N.0000 with effect from May 6, 2011 to May 12, 2011.

Foreign participation was further dipped to 4.8 percent of the total market activity. At the end of the trading day foreign investors were the net sellers with a net foreign outflow of Rs 8.5 million.

Price appreciation in index heavy counters such as John Keells Holdings Plc (up Rs 5.00), Carson Cumberbatch & Company Plc (up Rs 16.90) and Bukit Darah Company Plc (up Rs 18.00) contributed to the positive market performances.

Lanka Securities Research