Sri Lanka motor stocks rise on import duty cut

June 01, 2010 (LBO) – Sri Lankan stocks recovered Tuesday, as investors bought motor and consumer products firms on news of import tax cuts on vehicles and electronic goods, despite some retail profit-taking on selected stocks, brokers said. Shares of Autodrome closed at 570, up 35.25 or seven percent.

Singer Sri Lanka closed at 95.25, up 5.25 or six percent and Abans Electricals closed at 194.50, up 9.50 or five percent.

ACL Plastics closed at 112.00 rupees, down 3.00, Amana Takaful closed at 29.25 rupees, down 1.00, Arpico Finance Company closed at 70.00 rupees down 1.50, Asiri Central Hospitals closed at 125.00 rupees, down 2.25 and Ceylon Hospitals closed at 72.50 rupees, down 3.25.

Chemanex closed at 133.00 rupees, down 2.50, Chemical Industries (Colombo) closed at 70.25 rupees, down 1.00, Colombo Pharmacies closed at 450.00 rupees, down 4.00, Confifi Hotel Holdings closed at 220.50 rupees, down 25.50 and NAMAL Acuity Fund closed at 67.00 rupees, down 4.25.

Aitken Spence closed flat at 1,552.00 rupees, Hayleys closed at 303.75 rupees, down 1.25, Hemas Holdings closed at 151.50 rupees, up 50 cents and John Keells Holdings closed at 186.00 rupees, up 2.25.

The All Share Price Index closed at 4,258.80, up 21.64 points, while the Milanka index of more liquid stocks rose 0.44 percent (20.98 points) to close at 4,778.38.

Turnover was 1.18 billion rupees, according to stock exchange provisional figures.

Retail investors booked profits from mid and small cap stocks but got bullish in late afternoon trade after news the Treasury had slashed import taxes on motor vehicles and electronic goods, brokers said.

“The shares of listed motor vehicle importers rose ahead of the reduction on vehicle import duty,” said Nikita Tissera of SC Securities.

“We did see some profit-taking despite the rise in indices due to the rise in share prices of vehicle importers.”

United Motors Lanka was the day’s highest gainer, closing at 135.75 rupees, up 30.25 or almost 29 percent.

Diesel & Motor Engineering, the third highest gainer, closed at 550.75, up 105 rupees or 24 percent, Sathosa Motors closed at 152.50, up 15.50 or 11 percent and Colonial Motors closed at 116.50, up nine rupees or eight percent.