Decline in global tea prices hits plantation company stocks

By Hiran H. Senewiratne

The demand for plantation company stocks declined yesterday as tea prices dipped at Colombo's tea auction, market analysts said.

Shares at the Colombo Stock Exchange (CSE)  extended gains into a second session yesterday in heavy trade as they posted their highest close in over two months. 'Retail investors bought, particularly plantation stocks, after recent foreign buying, brokers said.

The days turnover stood at Rs. 1.43 billion with four crossings, more than double this year’s daily average of Rs.  935.8 million. Those crossings were; Central Finance crossed 500,000 shares to the tune of Rs. 43 million at a per share value of Rs. 86, Sampath Bank 205,380 shares crossed for Rs. 71.88 million at a per share value of Rs. 380, JKH 950,070 shares crossed for Rs. 155 million registering a per share value of Rs. 163 and Commercial Bank 1.64 million shares crossed to the tune of Rs. 245 million at a per share value of Rs. 149.5.

During the day, both indices moved up, ie, All Share Price Index moved up by 61.95 points and S and P SL20 was up by 47.75 points.

When it came to the retail market, the companies that mainly contributed to day's turnover were Sampath Bank Rs. 156 million (427,000 shares traded), HNB Rs. 107 million (398,000 shares traded) and Tokyo Cement Rs. 81 million (1.14 million shares traded).

When we take stock of the situation one finds that the CSE performance was positive and it is quite evident that foreign investors are into more buying. Financial sector stocks were bullish for some time due to a satisfactory performance in the sector especially in the first quarter.

Meanwhile, JKSB reports -

ASPI: 6,621.56 (+61.95 pts; +0.94%); Val T/O: Rs. 1.43bn (US$9.32mn); Vol T/O: 37.6mn; Trades: 8,381

Advance/decline ratio: 139/67; Top gainer: PCP.N (+100.00%) ; Top loser: CIFL.N (-18.18%)


• The ASPI ended higher today amid heavy market turnover driven by buying interest seen in selected large cap banking counters. COMB, SAMP, HNB, TKYO, and JKH led activity levels including a crossing also seen in CFIN.

• Banks, Finance, & Insurance was the most actively traded sector (+1.38%)

• Telecommunications was the best performing sector (+3.10%), supported by gains on DIAL (+1.67%)

• Information Technology was the worst performing sector (-1.29%), dragged down by declines on ECL (-1.33%)

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