Sri Lanka stocks close higher 0.07-pct: Nestle declines 9-pct in June

Jun 17, 2015 (LBO) – Sri Lanka’s stocks closed higher at 0.07 percent with market turnover crossing the two billion and index heavy stocks recording gains, Wednesday, brokers said.

The Colombo benchmark All Share Price Index (ASPI) closed 5.11 points lower at 7,049.71 up 0.07 percent.

The S&P SL20 closed 3.70 points higher at 3,914.76 up 0.09 percent.

Turnover was 2.13 billion rupees, up from 861 million rupees Tuesday with 65 stocks closing positive against 75 negative.

The contributor to turnover was John Keells Holding closing at 195.00 rupees, up 1.90 rupees with a off the floor trade of five million shares at 194.00 rupees.

“The JKH crossing accounted for 45 percent of the market turnover,” Lanka Securities said.

“The turnover crossed the two billion mark after the 20 May and the share volume recorded a four month high.”

Sampath Bank closed at 253.90 rupees, down 0.10 rupees and DFCC closed at 200.00 rupees, down 1.00 rupees.

Dialog Axiata closed at 11.20 rupees, down 0.10 rupees.

Nestle Lanka closed down for a second consecutive day at 2,000.00 rupees, down 20.30 rupees (1 percent).

“Nestle declined by nearly 9 percent this month so far,”

“In the meantime, the company is battling its worst-ever brand crisis in India where Nestle India is expected to lose 45 million US dollars from the continuing withdrawal and destruction of its Maggi instant noodles.”

The company’s Indian unit had to recall its instant noodle brand “Maggi” from shelves after Indian authorities claimed to have established that it contains excessive levels of lead.

However, Nestle Lanka said, that the company’s product “Maggi Noodles” which is manufactured locally, meets all the food laws in Sri Lanka.

Meanwhile the Swiss multinational food and beverage company, Nestle is to cut 15 percent of its workforce in 21 African countries saying the market is not growing there, the company was quoted as saying in foreign media.