July 04, Colombo: Pessimistic sentiments driven by the low investor confidence put the market on a bearish run and the market succumbed to yet another dull trading week with subdued activity. The indices kept falling on all five days.

All Share Price Index (ASPI) fell by 65.89 points (2.67%) to close at 2404.54 while Milanka Price Index (MPI) lost 109.31 points (6.04%) to end at 2891.52.

The highlight of the week was the repurchase of shares (28% stake) by Diesel and Motor Engineering Co. Ltd (DIMO). Hayleys PLC, Which held a 28% stake (3.4Mn shares), thus exited from DIMO at a premium price of Rs.160 per share securing an attractive capital gain. These shares were bought by DIMO, the company it self, which resulted in a sharp drop in equity base of the company amounting to Rs.540Mn. A total of 3.54Mn DIMO shares were traded within a price range of Rs.135 and Rs.98.

Other heavily traded stocks for the week include VPEL with 9.27Mn shares, VANI with 7.94Mn shares, VLL with 3.09Mn shares, MULL with 3.02Mn shares and NHL With 1.93Mn shares. Turnover for the week registered at Rs.2051Mn reflecting a daily average of Rs.410Mn. The highest contributors for the week include DIMO with Rs.561 (27%), JKH with Rs.354Mn (17%), NTB with Rs.170Mn (8%) and DIST with Rs.118Mn (6%). Foreigners were more prominent on the buying side bringing a net weekly inflow of Rs.60Mn. At the end of July 3, 2008 the Ceylinco Non Voting Ordinary share issue received 1,413 applications worth Rs.328.26Mn subscribing 1.88Mn shares leaving over 77% of the intended offer unsubscribed.