By Paneetha Ameresekere
The market, on the back of fears that the government may be returned to power at today’s elections, saw the Colombo Stock Exchange’s (CSE’s) all share price price index (ASPI) decline by 9.4 points to close at 526.6 points and the blue-chip MILANKA price index by 18.6 points to close at 856.2 points on a turnover of Rs 78 million, due mainly to panic retail selling at yesterday’s trading, sources said.

They were of the opinion that the market would come down further at today’s limited trading, due to the elections.Among the blue-chips that lost ground on Monday were the voting shares of Commercial Bank, down by Rs 4.75 to close at Rs 108.25; Hayleys, down by Rs 4 to close at Rs 88.50; John Keells Holdings (JKH) down by Rs 1.50 to close at Rs 47.50 and National Development Bank Ltd (NDB) down by Rs 1.25 to close at Rs 57.25.

The main contributors to yesterday’s trading were the sale of 160,000 shares of DFCC Bank at prices mainly ranging from between Rs 98 and Rs 99 a share, conttributing Rs 15.8 million to the day’s turnover.

The sellers were believed to be both retail and high networth, while the buyers, high networth. DFCC, however, closed the day at Rs 100, up by Rs one over Monday’s closing figure.

The trading of 208,000 shares of JKH contributed Rs 9.9 million to the turnover. The sellers were believed to be retailers, and the buyers, both high networth and retail.

The trading of 155,000 shares of NDB amidst retail selling with the buyers believed to be both institutional and retail.

The retail sale of 35,000 voting shares of Commercial Bank contributing Rs 3.8 million to the turnover, with the buyers believed to be both retail and institutional and the sale of 22,000 shares of Hayleys, contributing Rs two million to the day’s turnover with both the buyers and the sellers believed to be retail. Meanwhile, a high networth individual is believed to have bought a 5.15% stake in Kuruwita Textiles comprising some 515,000 shares at Rs 6 a share from the market on Monday , in what is believed to be the only strategic investment made in Monday’s trading, sources said.

In total, 794,500 shares of Kuruwita Textiles were bought from the market on Monday , contributing Rs 5.2 million to the day’s total turnover of Rs 145.2 million.

Meanwhile, the company’s nine major stakeholders as at March 31 were Mast Industries (Far East) Ltd (38.7%), Phoenix Ventures Ltd (11.2%), Mohamed Haji Omar, Mohamed Aslam Omar, Mohamed Ashroff Omar, Mohamed Feroz Omar and Firoze Ltd., each holding a 5.5% stake in Kuruwita and DFCC Bank and National Development Bank (NDB), each holding a 5% stake in the company.

However, it is believed that NDB exited from Kuruwita last week, selling their stake at Rs 3.50 a share. Meanwhile, the highest gainer for the day was Kuruwita Textiles, whose share value went up by 72% (Rs 4) to close at Rs 9.50 on Monday .

Overall, the CSE’s ASPI was down by 1.5 points to close at 536 points and the blue-chip MPI was down by 3.5 points to close at 874.8 points on Monday , data on a CSE release showed.

"During the first half of Monday’s trading, ‘the market was up,’ but thereafter it came down as high networth individuals and retail investors approached the market in a ‘conservative and cautious’ manner, disposed of a smaller percentage of their portfolio to book capital gains, if in the event the government that would be elected to power at tomorrow’s election proves to be an unstable one," they said.

In the same way, ‘a lot of people were buying’, the sources, attributiing to the day’s turnover of Rs 145.2 million (though less by almost a half to the turnover of Rs 270.9 million made at the previous working day which was on Thursday) said.

Meanwhile, the biggest contributor to the day’s turnover was John Keells Holdings Ltd (JKH) which witnessed a turnover of 724,100 shares, contributing Rs 36.2 million to the day’s turnover. These trades were done at prices ranging from bewteen Rs 48.50 and Rs 50 a share. JKH closed at Rs 49 a share, 50 cents more than the previous day’s closing price.

Some of the other contributors were the trading of 136,700 shares of DFCC which brought in Rs 13.4 million. DFCC shares were traded at prices ranging from between Rs 98 and Rs 99.50, before closing at Rs 99 a share, Rs one up over the previous day’s closing price.

1.4674 million shares of Asia Capital traded at prices ranging from between Rs 7.25 and Rs 7.75 a share, and contributing Rs 11 million to the day’s turnover. Asia Capital closed the day at Rs 7.25 a share, 25 cents less than the previous day’s closing price.

The trading of 107,000 non-voting shares of Commercial Bank which contributed Rs 8.9 million to the turnover. Commercial Bank’s non-voting shares which were traded at between Rs 80 and Rs 84 a share, closed the day at Rs 83.75, a gain of Rs 3.75 over the previous day’s closing price. Of this volume, Rs 8.8 million worth of Commercial Bank’s non-voting shares were purchased by a foreign buyer.

Meanwhile, foreign purchases for the day was Rs 10.15 million and foreign sales, Rs 20.28 million. Other notable contributors were Lanka Walltiles, bringing in Rs 8.6 million on a volume of 480,600 shares traded at between Rs 17.75 and Rs 18.50 a share. Lanka Walltiles closed the day at Rs 18, 50 cents up over the previous day’s closing price.

The sale of 757,000 shares of Asian Hotels at prices ranging from between Rs 5 and Rs 5.25 a share, contributing Rs 3.7 million to the day’s turnover. Asian Hotels closed the day at Rs 5, the same price it closed the previous day.

Among the top losers were Colombo Dockyard, down by Rs 1.75 to close at Rs 18; Lanka Aluminium down by Rs 1.25 to close at Rs 9.25 and Grain Elevators, down by Rs one to close at Rs 14.50. Other than Kuruwita other notable gainers were Union Chemicals, up by Rs 4 to close at Rs 29 and Kelani Cables, up Rs 3.50 to close at Rs 40.