Insurance trades only bright spot in lackluster day on CSE

The Colombo bourse closed the trading week reverting to its lackluster mode posting a turnover of Rs.77.4 million, down from the previous day’s Rs.142.5 million with both indices down marginally – the All Share by 4.24 points (0.26%) and the Milanka by 12.56 points (0.75%).

"It was a very quiet day although there was some activity in the insurance sector with trades in Ceylinco Insurance and Union Assurance contributing the bulk of the day’s turnover," Prashan Fernando of Acuity Stockbrokers said.

Both insurance counters closed flat with Ceylinco seeing nearly 0.2 million shares traded at Rs.139 at which price it closed generating a turnover of Rs.25.5 million while Union Assurance with nearly 0.2 million shares done at Rs.70 closed at that price contributing Rs.11.6 million to turnover.

The mandatory offer of Union Assurance at a price of Rs.72 per share is pending and analysts said that the four parcels traded yesterday seemed to have been sold by investors seeking to earn some interest on the cash realized rather than wait for the conclusion of the mandatory offer down the road.

"It’s possible that JKH itself bought the shares at the lower price," a broker said. "However, there was no confirmation on this."

Ceylinco Insurance saw three trades, one of 91,800 shares, a second of 91,900 shares and a small 100 share trade, all at the Rs.139 price.

Apart from the insurance counters, Commercial Bank with 92,200 shares traded between Rs.75 and Rs.78.75 generated a turnover of Rs.7.2 million. The counter closed at Rs.77.75, down one rupee from its previous close.

Walker & Greig with over 0.1 million shares done between Rs.24 and Rs.26, closed at Rs.25.50 gaining Rs.2 from its previous close while JKH was up 75 cents to close at Rs.58 on 56,600 shares traded between Rs.57 and Rs.58.25.