Bourse surges on news of IMF facility & speculation
News of a USD 2.5 billion standby facility from the IMF and speculation on Hotel Developers (owners of the Colombo Hilton) and Lanka Cement yesterday sent both indices and turnover on the Colombo bourse up sharply with turnover topping a billion rupees while the All Share Price Index gained 50.65 points (2.09%) and the Milanka was up 48.33 points (1.79%).
The Sunday Island of July 19 scooped the news that the IMF facility was close to finalization reporting that USD 2.5 billion rather than the USD 1.9 billion earlier sought was likely to be wrapped-up this week.
Many analysts had been saying that investors had been awaiting news of the facility before making their moves on the market.
Brokers said that sentiment was strong and foreign interest was evident on some blue chips though not for very large quantities.
``There were inquiries, not in the millions (of shares) but in the hundred thousands,’’ one broker said.
``JKH was the biggest contributor to turnover yesterday gaining two rupees to close at Rs. 135.25 on a trading range of Rs. 135 to Rs. 138 generating Rs. 222.3 million turnover,’’ a broker said.
Ceylinco Insurance, with 0.8 million shares traded, closed flat at Rs. 200 contributing the day’s second highest turnover of Rs. 160 million.
Dialog saw nearly 11.9 million shares done between Rs. 5.25 and Rs. 5.50 closing flat at Rs. 5.25 while the NDB, popular with investors recently, gained Rs. 5 to close at Rs. 161 on 0.2 million shares traded.
Pan Asia Bank, another popular recent play, was up 50 cents to Rs. 16.25 on 2.08 million shares traded between Rs. 16 and Rs, 16.50, while Lanka Cement, with continued speculation of an announcement by the company on its future plans, gained Rs. 2.75 to close at Rs. 33.75 on over 0.9 million shares done between Rs. 30.50 and Rs. 33.75.
``The speculative counters were Cement and Hotel Developers with punters expecting announcements from both companies,’’ brokers said. However there was no word on what these announcements might be.
Ceylon Guardian Investments and Ceylon Investments, quoted investment vehicles of the Carsons Group, announced two big first interim dividends – Rs. 11.50 per share for Guardian and Rs. 7 per share for Ceylon Investments. The shares will trade XD from July 29 and payment will be on Aug. 7.