The Colombo Stock Exchange’s (CSE’s) All Share Price Index (ASPI) gained by 3.6 points to close at 535.7 points and the MILANKA Price Index (MPI) by 1.2 points to close at 863.8 points on a turnover of Rs 90 million at yesterday’s trading, sources said.

Meanwhile, domestic retail investors continued to drive the market, with the indices reaching record highs on Wednesday, a CSE release said. The all ASPI which opened the day at 529 points closed at 532.1 points, recording its highest point Since March 7 of last year. The ASPI moved up by 3.1 points for the day.

Meanwhile the MPI which opened the day at 858.4 points, moved up by 4.2 points to reach 862.6 points. The MPI recorded its highest point since October 9 of last year.

The ASPI has recorded a growth of 31.8% from October 1 of this year upto Wednesday, while the MPI has recorded a growth of 42% for the same period. However, the ASPI recorded a 9.8% negative growth during the first nine months of the year, while the MPI declined by 13%.

‘The market is set to rally again, because there is so much of buying pressure, in anticipation of a government change,’ sources said. Both retail and high networth individuals are active, indulging in both buying and selling.they added.

Normally, when the market comes down (it came down marginally on Tuesday), the decline generally continues for around 10 consecutive days, but now it does not appear to be so, the sources said. The market is expected to go up today, and for the next couple of days, they said.

"The demand is now for shares that are below Rs 20 in value. The focus is now on low capitalised companies," the sources said. Many retailers are now moving away from the traditional market drivers of recent times, namely the National Development Bank (NDB) and John Keells Holding (JKH)," they said.

Overall, it is the merchant banks which have shown the highest percentage gains during the past several weeks upto yesterday, with shares prices going up by as much 140%, beginning from early last month, when the opposition brought notice of the no-confidence motion against the government, they said.

. "Merchant Bank of Sri Lanka, has gone up by Rs 2 to close at Rs 5.25, Asia Capital, from Rs 3.75 to Rs 9, Ceylinco Securities from Rs 2.25 to Rs 5.75, Vanik from 50 cents to Rs 1.50 and Seylan Merchant bank from Rs 2 to Rs 5 during this period," they said.

These shares have recovered in the hope of an economic revivial in the future, the sources said. Another example of a low capitalised company that has recovered during this period is Blue Diamonds, regarded by some as a virtually bankrupt company, whose share value went up from Rs 2.25 to Rs 4.50 during this period, the sources said.

Some of the main contributors to yesterday’s turnover was the sale of 1,861,700 shares of Lanka Ventures, being traded at prices ranging from between Rs 7.75 and Rs 9.75 a share. 817,500 shares of Three Acre Farms, being traded at prices ranging from between Rs 9 and Rs 10 a share.

71,800 shares of DFCC, traded at between Rs 95 and Rs 98 a share. 83,100 shares of NDB traded at between Rs 57 and Rs 58 a share. 147,300 shares of Asiri Hospitals, mainly traded at Rs 20 a share.

Some of the main gainers were Lanka Ventures, whose share price went up by 26.6% to close at Rs 9.50 a share, Central Securities, going up by 26% to close at Rs 12 and Bata, going up by 24% to close at Rs 9.

A Bartleet Mallory Stockbrokers (Pvt.) Ltd report said that the day began with both indices opening lower as profit taking by investors continued from the previous day. However, as the day wore on, the bulls once again took over, as selling virtually dried out. The retail driven market ended the day in positive territory with the ASPI and MPI appreciating by 3.1 points and 4.2 points respectively for the day, as positive sentiments once again made its presence felt.

Market turnover continued to remain healthy, totalling Rs 83.2 million. Once again it was Lanka Venture shares that contributed mainly to the day’s turnover, with other leading contributions coming from Three Acre Farms Ltd., DFCC Bank, NDB, JKH and Sampath Bank

Foreigners continued to remain on the sidelines. Foreign purchases were seen in Lanka Ventures, Coca Cola and JKH shares. Foreign selling was seen at Lanka Ventures and Sampath Bank.

A net foreign outflow of Rs 1.52 million was recorded for the day. Sectorally, there were as many as 12 sector indices that appreciated yesterday, with the investment trust and services sector indices rising the sharpest. The chemicals and pharmaceuticals, diversified and the land and property sector indices were the only sectors to decline yesterday. (PA)