Sri Lankan stocks recover losses

Jan 20, 2010 (LBO) – Sri Lankan shares closed 1.4 percent higher Wednesday recouping some of the losses made over the past two days as investors kept a close eye on presidential polls due early next week, dealers said.

With occupancy rates going up their is renewed interest in the leisure sector, brokers said.

Aitken Spence Hotels closed at 335.00 rupees, up 5.25, Asian Hotels closed at 56.50 rupees, up 4.50, Beruwela Walk Inn closed at 61.25 rupees, up 1.25, HDFC Bank closed at 70.00 rupees, up 3.50 and John Keells Hotels closed at 31.50 rupees, up 50 cents.

Riverina Hotels closed at 87.50 rupees, up 1.75, Stafford Hotels closed at 31.00 rupees, up 75 cents.

Fixed line operator Sri Lanka Telecom closed at 43.00 rupees, up 1.25, and celco Dialog Telekom closed at 7.00 rupees, up 25 cents.

Foreigners bought 102 million rupees worth of shares and sold 476 million rupees creating a net outflow of 574 million rupees, brokers said.

In a stock exchange filing, board of directors of Regnis Lanka have fully subscribed to an initial 5.0 million share issue of subsidiary Regnis Appliance (Pvt) Ltd, at 10 rupees per share.

Updated The All Share Price Index closed at 3,532.41, up 1.41 percent (49.11 points) while the Milanka index of more liquid stocks gained 1.51 percent (60.57 points) to close at 4,071.08.

Turnover was 1.2 billion rupees.

“Retail participation is boosting market activity which is a good sign for the Colombo bourse,” Rakshitha Perera, research manager at Batleet Mallory Stockbrokers said.

“The market could get a bit volatile in the coming days. But we advise investors to perceive volatility in a positive manner and capitalize on any market weaknesses.”

Stocks fell 0.97 percent on Monday, and fell a further 1.27 percent on Tuesday this week.

Conglomerate John Keells Holdings closed at 175.00 rupees, up 50 cents with over 1.0 million shares changing hands, while Distilleries Company of Sri Lanka closed at 116.00 rupees, up 25 cents.

Commercial Bank closed at 189.00 rupees, up 1.00, Hatton National Bank closed at 172.00 rupees, up 1.75, Sampath Bank closed at 214.25 rupees, up 75 cents, and Seylan Bank closed at 38.75 rupees, up 75 cents.

National Development Bank closed at 202.25 rupees, down 25 cents, and DFCC Bank closed at 168.00 rupees, up 3.00.