The Colombo bourse which experienced some resistance at the 6700 mark, could not sustain its position and dipped below to 6677 on Thursday. It staged a revival on Friday but was below the 6700 mark, which puts analysts into a state of hesitancy.
It has been stated that some brokers and investors are paranoid with the current developments while some fund managers are mere spectators, which means less demand for stocks. This sentiment is surprising because most companies have released very healthygrowth figures, more emphatically in the banking and finance sector and the leisure sectors. In addition there have been a host of seminars, workshops in the outstations as well as many TV programmes focussing on the Colombo Stock Market. There are also plans to introduce new trading instruments to broaden the current facilities.
However despite the current depressed tone a few companies are taking the plunge with new issues. People’s Leasing Co. Plc are making arrangements for an issue of 390 million ordinary shares at Rs 18 while MBSL Insurance has put 67 million shares at Rs 3 as well as one billion debenture issue of Rs 100 each and Multi Finance PLC a debenture issue of Rs 100 million, with the option for a further 100 million if oversubscribed.
Pacemakers of the previous week, Asian Alliance Insurance and Ascot Holdings ran out of steam but Regnis was still in the driving seat, racing to Rs 508 on Friday and closing at Rs 506.20.
Earlier in the week Capital Alliance Finance commenced trading on Tuesday when over 13 million shares were traded with its peak level being Rs. 50. The next day Alliance Finance was trading after its share split closing for the week at Rs 850. Panasian Power and e-Channelling seem to be a major attraction for the high networth investors for the past few weeks. Around 32 million shares were transacted on Tuesday. A major player has been collecting substantial quantities in Renuka Agri Foods according to a plan without upsetting the price structure during the recent past.
A similiar trend was noticed in Blue Diamonds Jewellery Worldwide but here there were many players collecting this stock.
PRICE BANDS – were removed from Ascot Holdings & Asian Alliance Insurance on October 7 while it was imposed on Ceylon & Foreign Trades from October 5 to 12.
CHANGES IN DIRECTORATES: Blue Diamonds Jewellery Worldwide from September 30, K V D D A Dias appointed Joint Managing Director/Production; M M N Priyantha as Jt. MD/Research & Development and W K Galagoda as Jt. MD/Finance;. At Lanka Orix Leasing Co PLC - Kazunori Okimoto resigned as Director and accordingly Takuma Yamazaki ceased to be his alternate Director. Masaaki Kawano was appointed Director, and Takuma Yamazaki has been appointed alternate Director to Masaaki Kawano; Central Investment& Finance PLC - S B Kondadeniya was appointed Executive Director while S P Daluwatte and K N Indatissa have resigned;
The Finance Co. PLC - Raynor Silva and Dinal Wijemanne were appointed Non Executive Directors;
Capital Development & Investment Co. PLC - Ashok Pathirage was appointed Director while Hemaka Amarasuriya resigned. Hatton National Bank PLC - Dr L R Karunaratne was appointed Non Executive Independent Director.
Both indices were trimmed down from levels last week with the All Share Price Index losing 0.1% or 84.72 points to close at 6698.83 while the Milanka was also 0.1% or 67.23 points lower at 5978.14. The turnover for the week was Rs. 8.9 billion against Rs 9.5 billion last week.
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