Indices close higher

Indices managed to close higher yesterday with an improved turnover helped by private deals on Environmental Resource Investments and John Keells Holdings. The Central Bank kept policy rates unchanged today and thereby we can expect the interest rates to hold at these levels or to rise marginally. This will indicate that market might prolong its sluggish performance as interest rates and equities have an inverse relationship. Meanwhile, gains on John Keells Holdings, Commercial Bank and Ceylon Tobacco helped indices to close in green upon seeing a drastic drop yesterday. Retail participation remained on the sidelines as blue-chips dominated turnover on the normal board. Foreign participation was considerable today as we suspect both buying and selling parties were foreign on the Environmental Resource Investments deals.

ASI gained 2.88 points (0.05%) to close at 5,556.77, MPI gained 1.47 points (0.03%) to close at 5,091.56 and the S & P SL20 index rose 3.55 points (0.12%) to close at 3,013.57. Turnover was Rs. 972.7Mn.

Top contributors to turnover were Environmental Resource Investments with Rs. 362.1Mn, John Keells Holdings with Rs. 135.3Mn and Environmental Resource Investments warrant-06 with Rs. 117.9 Mn. Most active counters for the day were Browns Beach Hotel, Nation Lanka Finance and Swarnamahal Finance. Notable gainers for the day were Stafford Hotels up by 6.9% to close at Rs. 38.50, Amana Takaful up by 6.3% to close at Rs. 1.70 and Blue Diamonds non-voting up by 5.6% to close at Rs. 1.90. Notable losers for the day were Multi Finance down by 3.4% to close at Rs. 31.00, Commercial Credit down by 15.5% to close at Rs. 15.00 and Browns down by 2.7% to close at Rs. 132.50. Lanka Securities Research