A domino-style fall this week also bruised the indices further. It was only three days of trading but much damage was done to, at one time, one of the Asia’s top performing stock markets. There was a feeble revival of the market on Friday, but the inherent sentiment is one of despair and disgust as indicated by the turnover.
Many were expecting some amendment and revision of the market-strangling rules owing to the impending departure of SEC Director-General Malik Cader which could have helped to revive the market even temporarily. But there seems to be nothing forthcoming which is irritating to many in the industry. Local fund managers are also in a mood of hesitancy, because one is unable to gauge the behaviour of the market.
One fund manager stated that he was offered a big parcel of a high potential growth stock but he reluctantly delayed the purchase owing to the depression market conditions.
An outstation investor who was a regular player is now out of the market and quotes the prices of the recent IPOs -- Expolanka, Softlogic Holdings, Free Lanka Capital Holdings, etc and asks will anyone come into the market. Since he mentioned the prices, they have declined further. Expolanka was at Rs 9.80, Softlogic Holdings Rs17.90 and Free Lanka Capital Holdings Rs 3.30.
Most companies like JKH, Hayleys and HNB have released good growth numbers but it has failed to galvanise any reaction. Ceylon Tobacco reached an astonishing level of Rs 430 on Friday in reaction to its nourishing 3rd interim dividend of Rs.10.50 accruing until 20th November 2011.
The Navara Capital (Pvt) Ltd-controlled Infrastructure Developers which reached the peak level of Rs.204, recently is now on the retreat, ending the period at Rs.156.40. A few players were able to spin off substantial profits in this stock. Frontliners of the earlier weeks like Regnis Lanka and Asian Alliance Insurance which are now cooling off were at Rs 427.30 and 206.60, respectively. Other interesting prices were that of J.L.Morisons Sons & Jones at Rs 2740, DIMO at Rs 1300 and Hunters Rs 680.
Dealings in Pelwatte Sugar and Hotel Developers were halted owing to the government take-over of these assets. Price Bands were imposed on Seylan Merchant Bank Warrants W 0016 covering the period 9th to 16th November 2011.
The turnover for the three days was Rs. 1.7 billion as compared to Rs.6.5 billion the earlier week when 32.7 million shares in Galadari Hotels were transacted, together with large blocks of Hayleys and Commercial Bank. Both indices were lower than the week earlier; the All Share Index losing 74.05 points or 0.1% to end at 6332.47 while the Millanka was also 46.98 points or 0.1% less to close at 5651.87.
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