After a few days of ups and downs, the Colombo stock market came back with strength yeaterday. It gained over 1%, and made me one of the best student investers! If these swings continues as they are, instead of applying for jobs, I might be able to walk into a few board of directors meetings, directly. On top of increasing the investments in the stocks and certain shares, the rallies of last few days allowed me to make some money as well, which I will be reinvesting, soon, back in to the market, perhaps in the Tea sector. I am very much interested in the tea sector and I am learning the theoretical Sri Lankan Tea Market these days, from a few very good teachers.
The market rallied at the end of the day after what seemed like a walk in molasses during the morning, sending ASPI and MPI up by 1.22% and 1.73%. The turnover toped the Rs. 3 billion mark.
Even with the current situation, the Colombo stock exchange Index is still the Asia’s best performer in 2010 with a 98 percent gain. This is solely due to the island’s economy rebuilding with vigor, after the end of a civil war in May 2009. The market index shed 6.2 percent since hitting an all-time high of 7,207.75 on 4th October 2010. According to Thomson Reuters, the Colombo Stock Exchange’s 14-day relative strength index is at 57.7, between the neutral limits of 30 and 70.
John Keells Holdings was the highest contributor (Rs. 582 million with 1.8 million shares traded) to the market turnover with four crossings (850,000 shares at Rs. 307 each and 100,000 shares at Rs. 310 each). The price increased by Rs. 1 (0.32%) and closed at Rs. 310. Foreign holding in JKH decreased by 1.1 million shares.On the money market side, the rupee closed at 111.85/87 a dollar from Monday’s 111.85/88, as state banks sold dollars at 111.85 rupees each.