Sri Lankan stocks close up 1.23-pct

Sept 29, 2010 (LBO) – Sri Lankan shares regained some lost ground Wednesday while regulators imposed a price band on two more stocks to curb price volatility, brokers said.

MTD Walkers closed at 585.00 rupees, up 23.20 (4.13 percent) with 3,100 shares traded, and Singalanka Standard Chemicals at 220.00 rupees, up 45.00 (25.71 percent) with 500 shares changing hands, brokers said.

Correction – One of the stocks on which price band imposed was East-West Properties, not Eastern Merchants

The All Share Price Index closed at 6,929.90, up 84.13 points or 1.23 percent, while the more liquid Milanka index ended at 7,347.78, up 2.11 percent or 151.82 points, according to stock exchange provisional figures.

Turnover was 3.3 billion rupees.

At end of trade, the 10 percent price band was imposed on East-West Properties voting and Coco Lanka non-voting shares, the Colombo Stock Exchange said in a statement.

Colombo Pharmacy Company, which was taken over by Environmental Resources Investments (ERI) closed at 2,550.00 rupees, up 265.50 (11.63 percent) with 500 shares traded.

“It would help the market participants if there was a bit more transparency on the price bands and regulatory actions,” said a market analyst.

“Many companies with severely odd and unexplainable trading patterns seem to have escaped the regulator’s net.”