Market begins negative

The stock market commenced its operations for the new week, demonstrating diminishing investor sentiments as both indices registered negative gains.

ASI lost 40.48 points (-0.54 percent) and ended at 7,439.15 where as sensitive MPI closed at 6,853.39, down 26.6 (-0.39 percent).

Daily turnover stood at Rs 3.00 bn. Colombo Land and Development Plc (CLND) (Rs 955.8 mn) made the strongest contributions to the daily turnover while trading heavily during trading hours. However at the end of the day a 10 percent price band was imposed on the counter with effect from May 24, 2011 to May 30, 2011.

CLND closed at Rs 32.30, up Rs 12.20 and rallied to a high of Rs 34.60. In addition John Keells Holdings Plc (Rs 308.3 mn) and Commercial Bank Plc (Rs 153.5 mn) made notable contributions the day's turnover while recording several off the floor deals.

Furthermore active level of investor participation was witnessed in counters such as Nation Lanka Finance Plc, Guardian Capital Partners Plc and Laugfs Gas (Non-voting). Meanwhile 10 percent price band was imposed on Guardian Capital Partners Plc with effect from May 24, 2011 to May 30, 2011.

Foreign participation was 12 percent of the total market activity. At the end of the day foreign investors were the net sellers with a net foreign outflow of Rs 32.4 million.

Lanka Securities Research