Share market regains momentum

by Lalin FERNANDOPULLE

The Colombo Stock Market regained momentum this week following the completion of the Presidential Elections reviving hopes of political and economic stability.

The market revived this week with shares recording a all-time high of close upon three billion rupees on Monday supported by retail buying. Trading on Tuesday brought Rs. 1.58 billion.

The main contributors for the turnover were JK Holdings, Lanka Cement, Kshatriya Holdings, Overseas Reality, Richard Peiris and Seylan Bank.

The turnover topped Rs. 1.5 billion on Friday. The All Share Price Index gained 8.92 points to close at 3,706.78 and Milanka gained 29.61 points to close at 4,269.18.

Around 95.99 million shares changed hands. Two crossings took place on HNB with a total of 560,000 at Rs. 1.73 and one on Asia Capital 32,984,200 at Rs. 10.

Brokers said the market regaining momentum toward the end of the week showed positive investor sentiments following post poll calm in the country.

"There were mixed reactions from investors on the polls with some disregarding the outcome while others taking a cautious step to be on cash", brokers said.

Market analysts said investors could capitalise on weaknesses when the market is volatile.

"A rise in election violence could adversely affect the market sentiments. Market growth would depend on a stable environment", analysts said. Tourism, construction and telecommunication are some of the key sectors that would attract large investments to the country with more opportunities for development in the North and the East.

Manager Research, Bartleet Mallory Stock Brokers, Rakshitha Perera said investors showed interest in the market irrespective of whoever is elected. "The market sentiments have been positive since the war coming to an end mid last year. The upward trend at the Colombo bourse would continue", he said.

Sri Lanka's Stock Market was rated as one of the best performing markets last year.

The All Share Price Index recorded an all time high closing at 3,188.8 points. This was the highest achieved by the index in the history of the Colombo Stock Exchange, surpassing the previous record of 3,139.7 points in October.