Sri Lankan Stocks Settle After Diving Deep
In Colombo Stock Exchange, Economy, magerata on October 14, 2010 at 4:37 am
Sri Lankan stocks closed up 1.4 percent after what seemed a wild ride on Wednesday. The benchmark index fell 5.7% during intra-day trade but late institutional purchases brought the index back up. The benchmark All Share Price Index closed at 94.81 points at 6,628.83 points recovering a part of the 4.4 percent loss a day earlier.
According to LBO
, the Milanka Index
of liquid stocks closed up 0.56 percent (47.13) at 7,166.88.
The Colombo stock exchange intervened and halted trading for half an hour till 10.59 am after the index fell more than 5.0 percent after one hour of trading as investors dumped stocks. But it was also an opportunity presented to those who are familiar with the numbers.
The intra day dive of 5.7 was only surpassed by the January 27, 2005 dip of 6.97, Bloomberg reported.
Sri Lanka stock market was prepared and the watchdog put limits on margin trading and also price curbs to prevent the formation of large bubbles which can collapse and hurt everyone.
Most Sri Lankan stocks are non-liquid and they are easy to manipulate. The overall market was valued at 25.1 times historical earnings at the day’s close. Sri Lanka’s stocks were up more than 110 percent at the beginning of the month.
Following stocks gained support of buyers and made me smile.
John Keells Holdings closed up 6.70 at 320.30 after falling as low as 300.00 with 3.0 million shares traded.
Dialog Axiata, fell to 11.00 rupees before closing flat at 12.00.Hatton National Bank closed up 4.40 rupees at 220.60 after falling as low as 200.00 rupees.
National Development Bank closed up 4.70 at 360.20 after falling as low as 336.00.
Nestle Lanka closed up 16.10 at 665.00 after falling as low as 630.00.
Aitken Spence Hotel Holdings closed up 11.40 at 778.00 after falling to 680.00.
Disclosure, I own stocks of some of the companies listed above and I am good.