Sri Lanka stocks rebound 1.03 percent

Aug 10, 2011 (LBO) – Sri Lankan stocks closed up 1.03 percent Wednesday in a retail driven rally anticipating a relaxation of margin buying rules with property stocks being pushed further up, brokers said. Seylan Developments closed at 18.90 rupees up 1.70 rupees or 9.8 percent, with 13.5 million shares traded for 254 million rupees.

Colombo Land closed at 43.00 rupees up 2.30 rupees or 5.6 percent, with 2.6 shares were traded for 117.2 million rupees.

Textured Jersey Lanka, an knit fabric firm which fell below its issue price of 15.00 rupees on Tuesday close up 40 cents at 14.40 rupees.

Kuruwita Textile, the top gainer closed at 31.50 rupees up 5.50 rupees or 21.15 percent. Laxapana Batteries closed at 13.50 rupees up 2.30 rupees or 20.54 percent.

Diesel and Motor Engineering Company, which reported a 321 percent net profit growth (636 million rupees) in the June quarter, closed at 1402.20 rupees up 20.50 rupees or 1.48 percent.

Sri Lanka Telecom Closed at 50.80 rupees up 30 cents, after reporting higher profis, HNB Assurance, which reported flat quarterly earnings closed at 60 rupees up 1.50 rupees and Aviva-NDB, which saw profits fall closed at 296.80 rupees down 13.20 rupees.

Sri Lanka’s Bairaha Farms, a poultry group also said net profits fell 47 percent to 55.1 million rupees in the June 2011 quarter. Bairaha closed at 286.50 rupees down 10.60 rupees.

John Keells Holdings closed at 196 rupees, up 1.90 rupees or 0.98 percent.

Off market negotiated deals included East West Properties at 926,300 shares at 38 rupees, Commercial Bank 124,208 shares at 236.50 rupees and Browns investments 15 million shares at 4.70 rupees.

Colombo’s benchmark All Share Price Index ended up 1.03 percent or 69.71 points at 6,819.90, while the Milanka Index of liquid stocks closed up 0.58 percent (35.38 points) at 6,143.20, according to stock exchange provisional figures.

Turnover was 2.5 billion rupees.

East West Properties, the most heavily traded share, closed at 38.10 rupees, up 3.4 rupees or 9.7 percent, with 6.8 million shares worth 258.4 million rupees changing hands.

East West said Tuesday it struck a deal with Marriot hotels group to design and build 150 room hotel in Weligama Bay, Matara in southern Sri Lanka.

There was also more speculation in property stocks. One analyst speaking in pithy Sinhalese said speculators hit property stocks hard enough to hurt (ridenna gahuwa).