Two Telecom Stocks dragged the market down.

The two index heavy telecom stocks namely Dialog & SLT was the top two stocks that taken the market to lower level. Dialog lost 50 cents to close at Rs 6.75 while Sri Lanka Telecom (SLT) lost 1.50 to close at Rs 36.50.

ASI lost 46.63 points or 1.22% to close at 3774.03 while MPI lost 70.70 points to end the day at 4318.86. Total equity turnover was amounted to 1.07 billion rupees.

Environmental Resources Investments Plc (GREG) lost Rs 12.50 to close at Rs 223.75. GREG was on upward trend for last few weeks. John Keells Holdings lost 1.25 to close at Rs 168.75.

Alcohol producer Distilleries Company of Sri Lanka Plc closed the day unchanged at Rs 118.25. Ceylinco Insurance Plc gained five rupees to close at Rs 270.00. Chevron Lubricant Lanka Plc the part of US based Chevron Texaco was up by 9.75 to close at Rs 183.75 on better earnings.

Colombo Stocks closed red despite healthy turnover.

ASI lost 4.64 points to close at Rs 3820.66 while MPI also down by 1.05 points to end the day at 4389.56. Turnover however was healthy at Rs 1.58 billion.

Heavily traded stocks for the day.

Company                                             No of shares Traded

Nation Lanka Finance                                     4,936,900

Lanka Walltile Plc                                             2,093,000

Seylan Bank (Nonvoting)                              1,977,700

Nawaloka Hospitals                                         1,831,700

HNB Asuarance Plc                                          1,715,400

AVIVA NDB insurance has reported higher profit for the year ended 31^st Dec 2009 and closed 4.50 higher at Rs 210.25. Aitken Spence Plc was up by fifty rupees to close at Rs 1350.00 while Aitken Spence Hotel Holdings Plc lost one rupee to close the day at Rs 419.00.

 The Bukit Darah Plc lost 87.75 to close at 3112.25. Colombo Dockyard lost 7.50 to close at Rs 303.75 while Commercial Bank of Ceylon Plc dipped by two rupees to close at Rs 195.00.

Foreigners were net buyers with Rs 340.2 million purchases & Rs 302.5 million sales.

CSE commence the week on a positive note.

The benchmark Colombo All Share Index closed 17.44 points higher at 3825.30 while MPI gained 35.88 points higher at 4390.61. Total equity turnover passed one billion rupees.

Shaw Wallace & Hedges Plc was up by 92.50 to close at Rs 276.50. Highly illiquid Colombo Pharmacy Plc gained 40.50to end the day at Rs 408.00.Gestenner of Ceylon Plc closed at Rs 65.75, up 23.50. The Housing Development Finance Corporation bank of Sri Lanka (HDFC) closed fifteen rupees higher at Rs 156.00. The largest alcohol producer Distilleries Co of Sri Lanka gained 1.50 to end the day at Rs 118.00.

Colombo Dockyard lost 4.25 to close at Rs 311.25 while Ceylinco Insurance Plc dipped by five rupees to close at Rs 265.00. Ceylon Tea Services Plc closed at Rs 500.00, down 30 rupees.

There were total of 87 gainers & 63 losers reported during the trading session.    

Meanwhile National Development bank has informed the Colombo Stock Exchange that their CEO / Director, Mr Eran Wickramarathne was included in the National List submitted by United National Front (UNF) to the Commissioner General of Elections, for the purpose of forth coming General Election.

Despite early gains CSE closed marginally lower.

Colombo All Share Index closed 3.15 points lower at 3770.40 while Milanka Price Index lost 16.31 points to close at 4315.20.  Toda’s total equity turnover was amounted to 799.6 million rupees.

Illiquid Watapota Investments Plc was up by 100 rupees to close at Rs 1000.00 on mere 100 shares. Ceylon Tea Services Plc gained Rs 82.75 to close at Rs 530.00. Ceylon Cold Stores Plc the markers of Elephant Brand soft drinks closed at Rs 183, up eighteen rupees. AVIVA NDB Insurance Plc (Formally Eagle Insurance Plc) closed the day 10.25 higher at Rs 220.00. Commercial Bank of Ceylon Plc gained four rupees to end the day at Rs 197.75.

Aitken Spence Plc lost Rs 29.75 on 200 shares to close at Rs 1270.00. Ceylon Leather Products Plc the makers of DI brand footwear closed 4.75 lower at Rs 87.00. Distilleries Company of Sri Lanka lost two rupees to close at Rs 115.00. Environmental Resources Investments Plc which was continuously gained in past few days lost 5.75 to close at Rs 233.50.

Investors are adjusting their portfolios by selling overvalued stocks while buying undervalued midcap stocks. Foreigners were net sellers with Rs 31.8 million purchases & Rs 57.3 million sales.

Huge gains in selected stocks pushed the Colombo indices higher.

Speculators chased on few stocks such as Environmental Resources Investments Plc (GREG) & MTD Walkers Plc. ASI was up by 30.08 to close at 3721.12 while MPI closed at 4269.25, up 75.5 points. Turnover was 1.69 billion rupees.

High gainers for the day.

1.       Environmental Resources Investments Plc closed at Rs 246.00, up Rs 52.25.

2.       MTD Walkers Plc closed at Rs 407.50, up 92.50.

3.       Aitken Spence Plc was up by twenty rupees to end the day at Rs 1250.00.

4.       Touchwood Investment Plc closed 13.75 higher at Rs 132.50.

5.       Sampath Bank was up by Rs 8.00 to close at Rs 220.25

Top five losers for the day.

1.       Ceylon Tea Services Plc lost 49.75 to close at Rs 400.00.

2.       Sunshine Holdings Plc was down by Rs 35.00 to close at Rs 800.00.

3.       Kandy Hotels Company (1938) Plc closed at Rs 99.25, down 10.75.

4.       Ceylon Guardian Investment Trust Plc was down by six rupees to close at Rs 458.00.

5.       First Capital Holdings Plc lost 5.75 to close the day at Rs 79.25.

 Distilleries Company of Sri Lanka Plc closed 1.25 higher at Rs 117.00 & over 1.5 million shares traded during the day.  Trades in GREG ordinary shares have contributed Rs 275.4 million for today’s total equity turnover.

Foreign sales exceeded the purchases by Rs 41.8 million.

CSE dipped but Ceylon Tea Brokers IPO oversubscribed.

Colombo Stocks continue to fall after reaching all time high in last week. ASI lost 26.47 points to close at 2691.04 while more liquid Milanka closed at 4193.75, lost 2.09 points. Turnover recorded for the day was 639.6 million rupees. The Registrars to the Ceylon Tea Brokers IPO, P W Coperate Secretarial (Pvt) Ltd has informed the oversubscription of said IPO.   

Despite massive loss (Rs 12 billion +) that announced by Dialog Telekom yesterday, it was closed 25 cents higher at Rs 7.00. Sri Lanka Telecom lost 1.25 to close at Rs 40.25.

The Bukit Darah Plc was down by Rs 199.00 to close at Rs 3300.50 while rarely traded company The Autodrome Plc lost fifty rupees to end the day at Rs 300.00. Ceylon Investment Plc lost 14.75 to close at Rs 260.00. Ceylon Tobacco Company Plc a subsidiary of multinational BAT group closed at Rs 236.00, down eight rupees.

Convenience Foods (Lanka) Plc, manufacturers of Soya Food product closed at Rs 126.75, up seven rupees.  Ceylinco Insurance Plc was up by 5.75 to close the day at Rs 240.00.

Foreigners were net sellers today with Rs 30.5 million purchases & Rs 80.4 million sales.

Colombo shares closed on a mixed note.

Trading at CSE started higher but after volatile trading it was closed with mixed results. ASI closed 7.54 higher at 3717.51 while MPI lost 20.05 points to close at 4195.84. Turnover was 1.20 billion rupees boosted by heavy trading in Kshatriya Holdings (13,038,900 shares) & Nation Trust Bank.

 Dialog Telekom has reported Rs 12.2 billion loss for the year ended 31^st December 2009. Probably the biggest ever loss reported in the history by listed companies in Sri Lanka. Sri Lanka’s Telekom sector is experiencing a tariff war after Indian mobile operator (Airtel) entering to local telecom market. Dialog closed unchanged at Rs 6.75.

Distilleries Group (DIST) net profit for the 9 month ended 31^st Dec 2009 fell 45.66% to Rs 2.07 billion rupees mainly due to loss of control in Sri Lanka Insurance Corporation (SLIC) on Supreme Court judgment in last year. According to Distilleries group they are still not in a position to finalize the accounting outcome of above ruling as Treasury is still not determined amount they have to pay back on cancelled privatization. Distilleries closed 25 cents higher at Rs 116.00.

Aitken Spence Plc lost Rs 109.00 on 100 shares to close at Rs 1230.00 while its Hotel Holding Subsidiary Aitken Spence Hotel Holdings Plc lost 13.50 to close at Rs 390.00.

The Bukit Darah Plc gained by massive Rs 364.00 to close the day at Rs 3499.50. John Keells Holdings Plc was up by Rs 2.75 to close at Rs 165.25.

Foreigners bought stocks valued at Rs 284.8 million & sold stocks worth Rs 263.9 million resulting net inflow.

The market correction begins.

Colombo over heated stocks fell in all most all the sectors. Chances are high to continue the downward trend with rising political tensions. Other thing is when the market drops margin traders come under forced selling to cover their margin limits.  

ASI slipped 49.50 points (-1.31%) & closed at 3724.84 while MPI lost 72.27 points (-1.67%) to close at 4263.53. Total equity turnover was amounted to 1.41 billion rupees.  Out of total traded stocks 133 companies lost their value while only 26 managed to close higher.

Blue Chip John Keells Holdings Plc was down by 3.50 to end the day at Rs 163.75 while forestry company Touchwood investment Plc dipped  16.25 to close at Rs 131.25. Lanka Orix Leasing Co. Plc lost five rupees to close at Rs 174.25. Ceylon Tobacco Company closed nine rupees lower at Rs 250.00.

Ceylon Grain Elevators closed one rupee higher at Rs 17.00 & over 1.4 million shares traded during the day.  Lanka Milk Food Plc a Company controlled by business tycoon Mr Harry Jayawardana closed at Rs 72.25, up 2.25.

After long period of time foreigners became net buyers with Rs 180.8 million purchases & Rs 133.3 million in sales.

Colombo stock recovered early losses.

After significant drop in early trading Colombo All Share Index managed to close marginally lower (-4.09 pints) at 3785.28. Turnover stood at 2.23 billion rupees. 

Heavily Traded Stocks.

 Marawila Resorts Plc - 6,938,800 shares traded & closed at Rs 7.75 (+1.50).

Piramal Glass Ceylon Plc – 5,679,000 shares traded & closed unchanged at Rs 2.40.

Seylan Merchant Bank (Nonvoting) – 4,613,700 shares traded & closed at Rs 1.20 (-0.10).

Nawaloka Hospitals – 4,593,000 shares traded & closed at Rs 3.50 down 20 cents.

Touchwood Investments Plc - 2,332,200 shares traded & closed Rs 12.25 higher at Rs 125.25.

Environmental Recourses Investments Plc gained Rs 56.75 to close at Rs 263.75 while Eagle Insurance an AVIVA subsidiary closed 14.50 higher at Rs 219.25. Hayleys Plc was up by four rupees to close at Rs 220.25. Watawala Plantations Plc gained eight rupees to end the day at Rs 168.00.

There were total of 38 gainers & 112 losers for the day.

Ceylon Tobacco Company Plc lost 10.75 to close at Rs 255.00 while Distilleries Company of Sri Lanka Plc lost 25 cents to close at Rs 115.75. The Bukit Darah Plc was down by 50.00 rupees to close at Rs 3050.00.

Foreigners were still on selling side with net outflow of Rs 41.1 million.

Colombo Stocks sky rocketed!

Huge gains in Sri Lanka’s monopolist tobacco producer Ceylon Tobacco Plc caused the indices to reach another all time high. Ceylon Tobacco Company Plc was up by 45.75 (20.80%) to close at Rs 265.75. ASI closed at 3789.37, up 82.65 points & MPI closed at 4373.75, up 104.57 points. Turnover was also impressive at 2.57 billion rupees.

Eagle Insurance Plc a member of international AVIVA group was up by 24.75 to end the day at Rs 204.75 while Environmental Resources Investments Plc closed at Rs 207.00, up 28.00. The Bukit Darah Plc gained 45.00 rupees to close at Rs 3100.00. Rarely traded Watapota Investments Plc was up by 150.00 to close at Rs 1050.00 but only 100 shares traded.

Quality floor tile producer Royal Ceramic Lanka Plc closed at Rs 97.25, up 11.75. The blue chip company Hayleys Plc gained 8.75 to close at Rs 216.25 after they announced better quarterly results.  Asia Capital Plc (ACAP) was up by three rupees to end the day at Rs 13.25. There were 34.16 million shares of ACAP changed hands today.

Still foreigners were net sellers with Rs 587.2 million purchases & Rs 713.7 million in sales. With this continuous foreign outflow I feel there will be market correction in near future. It is advisable to long term investors should wait & see. But there are opportunities for speculators & day Traders.

Higher gains in selected stocks helped the Indices to close positive.

After fluctuating within narrow range All Share Index managed to close 8.92 points higher at 3706.72 while Milanka index closed at 4269.18, up 29.61 points. Turnover was 1.51 billion rupees.

Top 5 percentage gainers.

·         The Fortress Resorts Plc (RHTL) gained 3.25 to end the day at Rs 18.50.

·         Arpico Finance Plc was up by 13.00 rupees to close at Rs 73.00.

·         Environmental Resources Investments Plc (GREG) closed at Rs 179.00, up Rs 30.25.

·         The Bukit Darah Plc gained 54.75 to close at Rs 3055.00.

·         Ceylon Hospitals Plc (Nonvoting) closed 10.50 higher at Rs 70.50.

Heavily traded stocks for the day.

·         Asia Capital Plc traded 34.4 million shares & closed 75 cents higher at Rs 10.25.

·         Seylan Merchant Bank Plc (Nonvoting) traded 20,850,000 shares & closed at Rs 1.30, up 10 cents.

·         Nawaloka Hospitals Plc traded 7,353,600 shares & closed 20 cents higher at Rs 3.30.

·         Dialog Telekom Plc traded 2,129,000 shares & closed unchanged at Rs 6.75.

·         3.8 million Shares of Renuka Agri Foods traded & closed unchanged at Rs 3.40.

Foreigners were net sellers for the day as Rs 408.3 million purchases & Rs 548.7 million sales. If foreign support will not come in big way within next few days there will be inevitable correction in the market as local investors alone can’t drive the market up for long run.   

Stocks down due to technical correction.

After reaching all time high yesterday (Both ASI & MPI) market lost marginally today. Investors were cashing out their recent gains.  ASI dipped 11.33 points to close at 3697.80 while Milanka index closed at 4239.57, down 25.64 points. Turnover was high at 1.60 billion rupees.

Index heavy weighted Dialog lost 25 cents to close at Rs 6.75 while diversified blue chip JKH lost 2.25 to end the day at Rs 173.00. The alcohol producer Distilleries Company of Sri Lanka Plc declined by two rupees to close at Rs 116.00. Malaysian based palm oil Company The Bukit Darah Plc lost 99.75 to close at Rs 3000.25. The ship builder Colombo Dockyard Plc was down by Rs 4.50 to close at Rs 301.25.

Aitken Spence Plc which has interest in tourism & transport sector gained 17.75 to close at Rs 1376.00 while Ceylon Hospitals Plc (Durdans) closed the day 15.00 higher at Rs 115.00. Ceylinco Insurance Plc closed at Rs 238.75, up 13.75. Hayleys Plc one of Sri Lanka’s oldest & diversified blue chip company gained 12 rupees to close at Rs 210.00.

Most of listed companies started releasing their December quarter results. Those results are showing fair improvement over previous quarters. The only matter that investors concerning is the net foreign out flow which was amounted three billion rupees so far this year.