Sri Lankan shares close up 1.61-pct

Aug 13, 2010 (2010) – Sri Lankan shares closed higher Friday as midcap stocks rallied mostly on retail investor interest amidst low trading volumes, while Environmental Resources Investments (ERI) shares continued to fall, brokers said.

The All Share Price Index closed at 5,115.79, was up 1.61 percent (80.94 points) Friday, while the Milanka index of more liquid stocks rose 0.61 percent (34.57 points) to close at 5,744.59, according to stock exchange provisional figures.

Turnover was 1.1 billion rupees.

“It’s encouraging to see the market actually react to earnings and fundamentals again,” Nikita Tissera, research manager at stock brokering firm SC Securities said.

“The market is tilted towards blue-chips and fundamentally backed strength and we see good signs for what’s to come.”

The market rallied on retail interest on midcap stocks, brokers said.

Abans Electricals closed at 132.90 rupees, up 11.80 (9.74 percent), ACL Cables closed at 92.50 rupees, up 2.50 (2.78 percent), Cargills (Ceylon) closed at 135.00 rupees, up 3.00 (2.27 percent), and Chemical Industries (Ceylon) closed at 96.00 rupees, up 3.40 (3.67 percent).

Apart from midcap stocks price gains on selected high value shares also pushed the market up, brokers said.

Distilleries Company of Sri Lankan closed at 132.40 rupees, up 2.40 (1.85 percent), Aitken Spence closed at 1,850.00 rupees, up 25.00 (1.37 percent) and Finlays Colombo closed at 197.30 rupees, up 7.40 (3.9 percent)

ERI normal shares closed at 98.70 rupees, down 1.10 (1.10 percent), while its warrants 0001 closed at 76.10 rupees, down 3.90 (4.88 percent), and W0002 closed at 49.00 rupees, down 1.40 (2.78 percent).

ERI’s W0003 closed at 45.70 rupees, down 1.80 (3.79 percent) and W0006 closed at 45.50 rupees, down 1.90 (4.01 percent).

The shareholders of Dankotuwa Porcelain, a struggling ceramic manufacturer has voted in favour of allowing ERI to take a stake of the company through private placement, a stock exchange filing said.