Sri Lankan stocks rise

30 Mar, 2005

Sri Lankan stocks ended firmer on Tuesday as brokerage Asia Capital gained sharply from a stake sale in rubber products maker Richard Pieris and Co Ltd, brokers said. The key Colombo all-share index rose a provisional 0.21 percent, or 3.57 points, to 1,730.04 points. The bourse hit its all-time closing high of 1,738.36 points on March 17. Dealers also cited gains in select blue chips expected to post strong full-year earnings results. Local brokerage Asia Capital Ltd rose 6.02 percent to 22.00 rupees a share after the sale.
"We have sold about 5.0 percent of our stake in Richard Pieris," said Asanga Seneviratne, CEO of Asia Capital. "We have realised a reasonable capital gain."
Sources at Asia Capital said the brokerage would make a capital gain of about 300 million rupees from the sale.
Shares in rubber products manufacturer Richard Pieris however fell 0.91 percent to 162.50 rupees after the stake sale.
Richard Pieris accounted for about 500 million rupees of Tuesday's total turnover of around 752.0 million rupees, and accounted for the bulk of foreign purchases worth 466 million rupees. Foreign sales were totalled 28 million rupees.
"Today's bulk of the turnover came from the Richard Pieris transaction," said one broker.
Among blue chip gainers, Distilleries Co of Sri Lanka Ltd rose 0.79 percent to 32.00 rupees.
"In Distilleries, the forecast is that profits of earnings is going to be attractive," the broker said.
The Milanka index- which tracks the most liquid and highly capitalised stocks - rose a provisional 0.27 percent, or 6.28 points, to 2,337.22 points.
The bourse has gained about 15 percent so far this year on corporate earnings and gains in the construction sector, which is seen benefiting from post-tsunami rebuilding.

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