Sri Lankan stocks up 2.05-pct for second consecutive day

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

Sep 17, 2009 (LBO) – Sri Lanka stocks extended gains Wednesday closing 2.05 percent higher, up 95.8 percent over the beginning of the year, while an initial public offer of a power firm was over subscribed, brokers said. Hemas Power which offered 31.3 million shares to raise 626 million rupees has attracted subscriptions valued at over a billion rupees an hour before the issue closed.

“This shows the depth of the capital market and it liquidity,” Vajira Kulatilaka, head of NDB Investment Bank said.

“It had a lot of interest retail interest.”

The benchmark Colombo All Share Price Index (ASPI) closed up 2.05 percent (59.26 points) to end at 2,944.05, while the Milanka index of liquid stocks gained 1.95 percent (62.93 points) to close at 3,290.02, according to provisional stock exchange data.

Turnover was 1.53 billion rupees.

“Investors are showing a new wave of optimism in anticipation of new fund coming into the market,” Nikita Tissera, research manager at stock brokering house SC Securities said.

“Companies in the conglomerate Carsons Groups was heavily traded today.” The bourse recorded a market capitalization of 942.6 billion rupees, beating the previous highest of 938.6 billion rupees in February 13, 2007.

Index heavy blue chip conglomerate John Keells Holdings was heavily traded today with 1.46 million changing hands today. It closed at 154.50 rupees, up 4.50 rupees.

Commercial Bank of Ceylon closed at 175.00 rupees, up 5.00, while DFCC Bank closed at 155.75 rupees, up 5.75.

Index heavy Dialog Telekom, a unit of Telekom Malaysia closed flat at 6.00 rupees with 3.7 million traded, while Sri Lanka’s largest fixed line operator Sri Lanka Telecom closed at 47.00 rupees, up 1.50.

Brokers said 1.56 Pan Asia Bank changed hands between 16.00 to 17.00 rupees and closed at 16.50 rupees, up 50 cents.

Lanka Indian Oil Company closed at 19.00 rupees, up 1.00, while over one million Seylan Bank non-voting shares12.00 rupees traded today to close at 12.00 rupees, down 25 cents.

Touchwood Investments, a retailer favourite closed at 95.25 rupees, up 5.50, while Ceylinco Finance closed at 24.00 rupees, up 2.75, with 1.19 million shares traded.