May 11, Colombo: Sri Lanka stock market witnessed a moderate level of activity during the week with the indices fluctuating between marginal positive and negative levels supported by low investor participation.

Daily activity was subdued to a great extent with turnover levels hovering in the range of 220 to 290 million rupees except on Friday. The All Share Price Index (ASPI) gained 5.5 points (0.21%) to end the week at 2641.24 while the Milanka Price Index (MPI) declined 10.63 points (0.33%) to close the week at 3224.67.

Agalawatta Plantations Ltd. (AGAL) and Horana Plantations PLC (HOPL) recorded lower profits during the first quarter of 2008 compared to the corresponding period last year depressing the investor sentiment on plantation sector. Investors fearing a probable market correction in the sector triggered a selling spree realizing their profits. However impressive earnings recorded by the banking and insurance stocks attracted interest to push the prices up.

Overall interest was witnessed on low valued counters in the likes of Tess Agro Ltd., (TESS), Ceylinco Hotels Corporation Ltd. (CHOT), The Fortress Resorts (RHTL), East West Properties Ltd. (EAST), Valibel Power Erathna Ltd. (VPEL), Sierra Cables PLC (SIRA), Ceylon Glass Company PLC (GLAS), The Colombo Fort Land and Building Company Ltd. (CFLB) and Dankotuwa Porcelain PLC (DPL) and placed at the top slots on daily volumes list.

The highlight of the week was that Lanka Orix Leasing Company (LOLC) acquiring 67% stake of Commercial Leasing Company Ltd. (COML) on Friday at Rs.93.50 while the sellers were Commercial Bank PLC (COMB) and Chemanex PLC (CHMX). The trade pushed the turnover levels on that day to a staggering Rs.1.3 billion.

Notable trades during the week were COML with 11.7 million shares, TESS with 6.59 million shares, RHTL with 3.57 million shares, SIRA with 2.98 million shares and VPEL with 2.33 million shares. Turnover for the week registered at Rs.2.4 billion reflecting a daily average of Rs.478 million. However excluding Friday’s large transaction, the average daily turnover was a moderate Rs.268 million. Highest contributors include DIST with Rs.101.1 million (4.2%), JKH with Rs.75.6 million (3.2%), CHOT with Rs.67.5 million (2.8%) and CHMX with Rs.63.6 million (2.7%). Foreigners were more prominent on the buying side leading to a net inflow of Rs.32 million.