The Colombo Stock Exchange’s (CSE’s) all share price index (ASPI) fell by 8.4 points to close at 497.2 points and The MILANKA Price Index (MPI) declined by an appreciable 21.1 points on Thursday, to end at 814.8 points, data on a CSE release showed.

Bartleet Mallory Stockbrokers (Pvt) Ltd.’s (BMS’) daily market report attributed this decline to ‘severe’ selling pressure, paricularly on John Keells Holding (JKH) and National Development Bank Ltd (NDB) shares, both by local as well as foreign investors.

‘This pushed many share prices lower yesterday,’ resulting in both indices witnessing ‘rather sharp declines,’ it said. JKH and NDB are said to be the main drivers of the market because of the high liquidity of its stocks, according to some.

The day saw NDB’s share prices, which opened the day at Rs 57 a share, falling by Rs 2 over the previous day’s (Tuesday, as Wednesday was a holiday) closing price, to end on Thursday at Rs 55.50 a share, on a turnover of 746,500 NDB shares.

Sources said that one of the biggest purchasers of NDB shares on Thursday was Dhammika Perera, described by many as a young man with ‘lots’ of business acumen, who bought nearly 500,000 shares of NDB from National Savings Bank Ltd (NSB) at Rs 55 a share.

Earlier on October 23, Perera is believed to have sold 1.5 million shares of NDB to the market at Rs 62 a share, whilst buying back 500,000 shares of NDB during the course of that day at a depressed price of Rs 59 a share.

Perera is said to be the single largest shareholder of NDB, owning a 9.7% stake in the bank, comprising four million shares. NDB’s shares which opened at Rs 57 saw it decline to Rs 55, before experiencing a minor flurry to go upto Rs 57, finally experiencing a gradual decline to close at Rs 55.50.

Meanwhile, according to a CSE release, NDB’s quarterly profits for the quarter ended September 30, saw profits dip by 50.69% to register a figure of Rs 194.911 million, which some sources attributed as being the cause for the decline in NDB’s share prices.

Thursday’s trading also witnessed a turnover of 536,800 shares of JKH and a decline in its share price by Rs 3.25 a share at the end of the day’s trading, which saw it close at Rs 50 a share.

Some sources speculated that the quarterly results of JKH (a highly diversified blue chip company which is also heavily into the hotel, tourism and transport business) for the quarter ended September 30, and due any time now, was expected to be relatively unfavourable due to depressed market conditions, which in turn would drive down its share prices further, thereby having an adverse bearing on the market.

JKH’s shares opened on Thursday at Rs 53, and saw it gradually decline to Rs 49.25, before closing at Rs 50. Meanwhile, BMS said that price declines led advances by a 45 to 15 margin at Thursday’s trading.

However, market turnover closed the day at an ‘active’ Rs 85.2 million, with JKH and NDB shares accounting for 48% and 32% of this figure. Foreign purchases and sales accounted for 13% and 27% of total market turnover.

Foreign activity was mainly concentrated on the selling of JKH, NDB (said to be valued at Rs six million) and Aitken Spence shares. Aitken Spence witnessed a price decline of Rs 7, with a parcel of 25,200 shares sold at Rs 93 a share, andh the total transaction valued at Rs 2.3 million.

BMS further said that foreign purchases were seen in JKH shares as well (Rs 13 million), with a net outflow of a total of Rs 11.9 million being recorded for the day. Total foreign purchases yesterday amounted to Rs 11.132 million, while total foreign sales, Rs 23.019 million.

The number of shares traded was 2.5 million, as against 1.5 million the previous working day. The number of transactions increased from 826 to 1,072, while market capitalisation declined from Rs 100.7 million to Rs 99.

BMS further said that sectorally, there were as many as nine sector indices that declined with the Banks, Finance and Insurance sector indices depreciating the most. Only the Sertvices, Chemicals and the Trading sector indices appreciated during the day.

Among some of Thursday’s top gainers was Central Industries, whose share value appreciated by Rs 10 to close the day at Rs 35, Regnis, by Rs 4.25 to close at Rs 32 and John Keells by Rs 2 to close at Rs 40.

Among the top losers were Lion Brewery which lost Rs 4.50 to close at Rs 30.75 and Ceylon Brewery by Rs 4 to close at Rs 35.50 a share, Commercial Bank dropped Rs 2.25 to close at Rs 100 and DFCC by Rs 2 to close at Rs 93. (PA)