Colombo stocks starts strong; loses steam

Colombo shares started strong at the start of a 4-day trade week on Tuesday but lost steam along the way, stockbrokers said.

However the turnover was a massive Rs.7.1 billion. 

The 'usual suspects' were at play at the start with everyday stocks traded, they said. This trend will dramatically subside next week when the calculation method of the All Share Price Index (ASPI) will be redone to free float adjusted market capitalisation. 

"This will generate more realistic returns and the index methodology would be in line with other regional index calculations," a stockbroker said. 

The index heavy ASPI was marginally up by 0.89 per cent or 118.71 points to 13,457.20. 

The S&P Index was up by 1.39 per cent or 63.51 points up to 4,618.45 as at market close.

Vallibel One shares were the most active today with the share price 10.4 per cent up to Rs.97.40 followed by Expolanka Holdings and Softlogic Capital. 

With increasing tourist arrivals into the country hotel sector stocks also saw some interest. "They will gather more interest towards the month end," an analyst said. (Duruthu)