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.
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