Sri Lankan shares close 0.94-pct up

Jan 13, 2010 (LBO) – Sri Lankan stocks closed up 0.9 percent Wednesday reversing two days of losses and heavy buying in diversified Distilleries and another firm which has made a cash call helping turnover top 2.0 billion rupees, brokers said. The All Share Price Index closed at 3,536.71, up 1.20 percent (42.09 points) while the Milanka index of more liquid stocks gained 1.98 percent (79.48 points) to close at 4,005.89.

Turnover was 2.26 billion rupees.

“Market was driven up by Environmental Resources shares and warrants,” Waruna Singappuli, head of research at NDB Stockbrokers said.

“The company yesterday made an announcement of a rights issue attached with warrants which could raise close to 40 billion rupees till 2015. However the future profitability of the company would depend on how these funds will be invested.”

The firm’s 0000 warrant closed at 96.25 rupees, up 22.00, while its 001 warrant also closed at 96.25 rupees, up 22.00. Environmental Resources Holdings voting shares closed at 122.00 rupees, up 24.00.

As of date, Environmental Resources is ranked at 17 in terms of market capitalisation on the Colombo Stock Exchange.

Index heavy Distilleries Company of Sri Lanka closed at 120.00, up 2.50, with almost 3.0 million shares changing hands today, and conglomerate John Keells Holdings closed at 178.75 rupees, down 25 cents.

Commercial Bank of Ceylon closed at 191.75 rupees, down 3.00, Hatton National Bank closed at 176.00 rupees, up 2.00, Sampath Bank closed at 218.28 rupees, down 1.50, and Seylan Bank closed at 39.50 rupees, down 25 cents.

National Development Bank closed at 206.25 rupees, up 2.00, and DFCC Bank closed flat at 168.00 rupees.

Brokers said Renuka Agri Foods shares closed flat at 3.30, with 1.28 million rupees traded.