Margin calls & panic selling evident
The Colombo bourse continued to bleed yesterday with turnover at Rs.1.28 billion, up from the previous day’s Rs.827.22 million, partly attributed to panic selling as well as margin calls that were evident, brokers said.
The All Share Price Index was down 127 points (2.24%) while the Milanka lost 100.81 points (2.10%) with 38 gainers dismally trailing 185 losers.
"There was a lot of panic selling and margin calls too were evident," a broker said on condition of anonymity. ``At one time the index was down 200 points when some bargain hunters came in."
Yesterday’s top turnover was generated by JKH which lost Rs.4 to close at Rs.161 on nearly 1.2 million shares done between Rs.159 and Rs.165 contributing Rs.184.5 million to the day’s business volume.
Brokers said that there were no crossings but judging by size of some of the parcels transacted, high net worth participation was obvious. These parcels ranged from around 10,000 to 50,000 with several trades of 25,000 and thereabouts posted.
Swarnamahal Finance Services was the second highest business generator gaining Rs.14.30 to close at Rs.111.60. The counter was done between Rs.103 and Rs.116 contributing Rs.150.5 million to turnover. Brokers said that there were no crossings.
Citrus Kalpitiya gained 20 cents to close at Rs.13.50 on nearly 7.2 million shares done between Rs.11 and Rs.17.50 with no crossings. One big parcel of nearly 6.8 million shares was done on the trading floor at Rs.17.50.
Asia Asset Finance edged up 20 cents to close at Rs.6.20 on slightly over 7.6 million shares done between Rs.5.60 and Rs.6.20 while ERI lost Rs.1.40 to close at Rs.27 on over 1.8 million shares done between Rs.26.40 and Rs.38.50.
Central Finance and Commercial Bank were among the blue chip losers with ComBank down 70 cents to close at Rs.99 on over 0.2 million shares and Central Finance down Rs.9.70 to close at Rs.180 on over 0.1 million shares. Ceylon Guardian also edged down 10 cents to close at Rs.230 on over 0.1 million shares.
Hotel Services announced that the Hotel Ceylon Continental, the country’s first five-star, will be closed on February 1 for a Rs.1.8 billion refurbishment with the 259-room hotel due to reopen with a new look in October.
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