Weekly Stock Market Summary.

For the week ended 4^th June 2010.

Colombo market received positive market moving news from the beginning of the week. First it was government announcement of import tax cut on vehicles & consumer electronic items. With tax cut announcement several listed firms that engaged in those business has risen sharply. The selling of 9.9% stake in Commercial Bank of Ceylon Plc (COMB) by DFCC Bank was the second market moving news. DFCC Bank made over Rs 3.7 billion net profit from the sale.

With the COMB transaction both DFCC Bank & COMB gained sharply. DFCC Bank closed the day at Rs 250.00, up 47.00 & COMB closed at Rs 266.75, up 17.50. According to brokers COMB stake was bought by a foreign investor. Although taking over of Bank in Sri Lanka is not an easy task with strict regulation of Central Bank I remember there were failed attempts to take over of COMB & Sampath Bank several years ago.

The All Share Index (ASI) closed the week at 4354.20, up 103.21 while Milanka Price Index (MPI) closed the week 206.99 points higher at 4968.34. Total equity turnover for the entire week was 18.44 billion rupees against 5.13 billion rupees recorded previous week.    

The takeover of controlling interest in Confifi Hotel Group by Lanka Orix Leasing Company (LOLC) was another major event that happened during the trading week.

Sampath Bank was up by 55.75 to close the week at Rs 339.50 while Hatton National Bank Plc (HNB) gained 22.25 to close at Rs 271.75.

In Motor sector Diesel & Motor Engineering Plc (DIMO) was up by Rs 202.50 to close the week at Rs 636.25 while United Motors Lanka Plc gained 25.25 to close at Rs 132.25. Lanka Ashok Leyland Plc closed at Rs 1325.00, up 100 rupees but on mere 200 shares.

Foreign investors were net sellers during the week with Rs 1.54 billion worth of purchases & Rs 3.10 billion sales.

During the week market touched new high. I predicted this success of Colombo Stock Market on 10^th January 2009. Here is the article…

Why should you Bullish on Colombo Stocks.