Bourse indices end mixed mixed

The CSE had a volatile week with the indices ending mixed, as speculation and rumours drove up stocks early in the week, and forced selling brought them down end of the week. The large cap laden MPI ended the week down as foreign investors were seen exiting the market. The ASI index of all stocks gained 3 points, or 0.09%, for the week to close at 3,710. The MPI meanwhile lost 53 points, or 1.3%, to end the week at 4,216.
The week also saw net foreign sales of Rs 224 million with total sales at Rs 1.4 billion and purchases at Rs 1.2 billion. Total turnover for the week was Rs 9.5 billion, a daily average of Rs 1.9 billion, for the first 5-day working week in a fortnight.
The company which saw the most was in Environmental Resources Investments. The company’s shares and warrants have been a hot favourite amongst the retail speculators, who have been buying up them up on the news of future rights issues. The company’s shares shot up from last weeks to close at Rs 179.00 to a life high of Rs 270.00 midweek. The W0000 warrants, which give the holder the right to buy shares of the company in 3rd quarter of 2010 at a price of Rs 22.00, shot up from Rs 119.00 to Rs 177.75. And the W0001 warrant, excisable for shares in 2011 for one ordinary share at Rs 24.00, shot up to Rs 179.50 from Rs 121.00. On Wednesday with signs of a market correction emerging, the shares and warrants did not shoot up as it had done in the past two days. Then the SEC announced that the company share price movements were under scrutiny for irregularity on Thursday and the scripts saw steep declines. Finally at the end of the week with stop loss calls coming in, the prices reached a bottom of Rs 184.00 (shares), Rs 105.00 (W0000) and Rs 104.00 (W0001) but finally picked up to close at the above mentioned prices. The company also released its financial statements for the 9 months ending December 2009. The group had turned to profitability at last with the 9 month EPS at 4 cents on a three month earning of 16 cents. The group’s NAV stood at Rs 17.70.
In other corporate news, Asia Capital disclosed that V Vijayaratnam had purchased an additional 31.9 million shares thus controlling an 87 percent of the company. The stakes purchased by him were previously owned by K S Tiong and A S Khalid. Asia Capital has interests in insurance, commodity brokering and financial services including a stock brokering firm. Eagle Insurance’s also announced plans to change its name to Aviva NDB Insurance and sought the approval of the shareholders to affect the same.
-Stock Market Correspondent