Sri Lankan stocks rebound 1.52-pct

Sep 16, 2009 (LBO) – Sri Lankan shares bounced back Wednesday as investors heavily placed bets on index heavy John Keells Holdings (JKH), Distilleries Company and Commercial Bank, brokers said. The benchmark Colombo All Share Price Index (ASPI) closed up 1.65 percent (46.80points) to end at 2,884.79, while the Milanka index of liquid stocks gained 1.98 percent (62.58 points) to close at 3,227.09, according to provisional stock exchange data.

Turnover was 1.29 billion rupees.

“The market consolidated from a technical correction of yesterday,” Manjula Kumarasinghe from SKM Lanka Holdings Limited said.

“With the expectation of interest rates to go down further the market is poised to move up with the active participation of foreign, institutional and high net worth investors.”

Stock pulled 0.85 percent on Tuesday taking a breather from a blistering bull run.

Brokers said 3.24 million John Keells Holdings (JKH) shares changed hands. It closed at 150.00 rupees, up 2.75.

The group was named among the 200 best performing Asian firms under a billion US dollars of revenue by Forbes Asia, a financial publication.

Distilleries Company of Sri Lanka, a unit of unlisted Stassens Group closed at 85.25 rupees, up 2.75.

“Over subscription of close ended NAMAL Acuity fund would help to improve the market further,” Kumarasinghe said.

Commercial Bank of Ceylon closed at 169.75 rupees, up 6.75, while DFCC Bank closed at 150.00 rupees, up 4.75.

Index heavy Dialog Telekom, a unit of Telekom Malaysia closed flat at 6.00 rupees with 2.7 million traded, while Sri Lanka’s largest fixed line operator Sri Lanka Telecom closed at 45.50 rupees, up 50 cents.

Brokers said 531,000 Pan Asia Bank changed hands between 16.00 to 16.25 rupees and closed at 16.00 rupees.

The Fortress Resorts which caters to up market tourists closed at 14.00 rupees, up 1.00 on almost 84,000 shares changing hands today.

On Wednesday there was net foreign buying worth 292.6 million rupees, with foreign investors buying 560.7 million worth shares and selling shares valued at 268.1 million rupees, brokers said.

Updated