By Paneetha Ameresekere
The Colombo stock market recorded its highest turnover for a day, registering Rs 866.9 million at Monday trading, as it continued its bull run for the third consecutive working day, sources and a Colombo Stock Exchange (CSE) release said.

The CSE’s all share price index (ASPI) gained by 35 points (5.4%) to close at 678.2 points and the blue-chip MILANKA price index (MPI) index by 57.4 points (5.1%) to close at 1,164 points yesterday, the CSE said, adding that the MPI recorded its highest ever index level yesterday, since its introduction in 1999.

During the middle of the day, the ASPI and the MPI were higher, before subsiding towards the end of the day’s trading, the sources said, adding that a foreign sale in John Keells Holdings Ltd (JKH), contributed to the slowing down in the momentum in the market yesterday.

‘The market continued to be driven by domestic retail investors. The CSE’s investor services centre at Matara recorded a turnover of Rs 34 million, it further said.’ The market is moving up on expectations that the new government will also hold the key defence and finance portfolios, among other Cabinet portfolios,’ they said.

Several of the country’s exporters, now want to bring their export proceeds into the country and invest here, the sources added. ‘Large numbers of investors, both retail and high networth, who have been inactive for several years, have again entered the market and are in a hurry to buy shares even at these high prices,’ they further said.

The sources also said that many of them have not been able to get the ‘shares they want,’ because of bottlenecks in stockbroking firms, such as an inadequate number of computers and personnel to cope with the demand.

Stocks with low price earning ratios such as Caltex, Sampath Bank, Asiri Hospitals and Distilleries are expected to move up further, they said. Also, shares with high net asset value, but low prices, such as Asian Hotels and Ceylinco Seylan Development are also expected to rally, the sources said.

There was speculation, that the defeated government, in order to allegedly keep the market down prior to the elections, had ordered funds such as the ETF and the EPF to dispose of their portfolio, they claimed.

Commenting on yesterday’s market performance, they said that it was mainly retailer driven, with high networth individuals buying stocks in blue-chips such as JKH. ‘There were no strategic buys yesterday,’ the sources said.

The single biggest contributor to the day’s turnover was JKH, bringing in Rs 353 million on a share volume of 5.36 million. ‘JKH started strong at Rs 70, before closing at Rs 65.25; gaining by 25 cents over the previous day’s closing price,’ the sources said.

They further said that out of this Rs 353 million worth of JKH shares traded, foreign sales amounted to Rs 312.6 million or 2.8% of JKH’s equity. The buyers were believed to be high networth individuals. Total foreign purchases amounted to Rs 27 million and total foreign sales, Rs 332.6 million at yesterday’s trading.

Other major contributors to the day’s trading were National Development Bank Ltd (NDB), bringing in Rs 128.3 million on a volume of 1.5 million shares. NDB closed at Rs 86, up Rs 6 over the previous day’s closing price.

Nations Trust Bank Ltd (NTB), with ‘large scale’ high networth individuals on the buying side, and the sellers being retail, contributed Rs 54 million on a volume of 3.09 million shares. NTB, started trading at Rs 17.50; before going up to Rs 19, and finally settling down at Rs 18, Rs 1.25 up over the previous day’s closing price.

Asia Capital, Rs 29 million, on a volume of 2.66 million shares. Foreign purchases of the company amounted to Rs 3.2 million, with the buyer believed to be the Hong Kong based Moghul Fund, and the sellers, high networth individuals. Asia Capital closed the day at Rs 10.75, Rs 1.25 up over the previous day’s closing price.

Commercial Bank, Rs 26 million, on a volume of 175,800 shares, Commercial Bank closed at Rs 145, Rs 6 more over the previous day’s closing price. Royal Ceramics, Rs 23 million, on a volume of 785,300 shares. Royal Ceramics closed at Rs 30, up, Rs 2.50 over the previous day’s closing figure. ‘Certain major shareholders of Ceramics exited after taking profits,’ the sources said.

Hatton National Bank Ltd (HNB), Rs 22.8 million on a volume of 373,600 shares. HNB closed the day at Rs 63, up Rs 5.75 over the previous day’s closing price. Vanik, Rs 18.1 million on 4.36 million shares. Vanik closed the day at Rs 4.25, up by Rs 1.25 or 41% over the previous day’s closing price

Ceylon Grain Elevators (CGE), Rs 13.6 million on a volume of 703,800 shares. CGE closed at Rs 18.75, 25 cents more than the previous day’s closing price. Colombo Dockyard, Rs 12.8 million on 454,600 shares. Dockyard closed at Rs 27, up 50 cents over the previous day’s closing price. 1.39 million shares of Asian Hotels were also traded yesterday.

Two of the other major gainers were Lion Brewery, up by 31% or Rs 12 to close at Rs 50. 81,800 shares of Lion Brewery were traded during the day. And Caltex Lubricants, up by 12% or by Rs 10 to close at Rs 88. A total of 48,200 shares of Caltex were traded yesterday. There were seemingly nor major losers at yesterday’s trading, the sources said.

Meanwhile, a First Capital release said that secondary market yields saw no real change from Friday. Market players were watching this week’s primary market treasury bill auction for a new direction in interest rates, it said.