Market marginally positive

Shares in the Colombo Stock Exchange traded within a very narrow margin with turnover at Rs 250 million. The ASPI moved up by 3 (+0.16%) to close at 2,566 points, whereas the MPI tracks the markets most liquid stocks moved up by 2 points (+0.09%) to end the day at 3,216 points.

Turnover was mainly driven by retail interest in York Arcade Holdings (Rs. 36 million), a crossing of 150,000 shares in John Keells Holdings (Rs. 19 Million), continued retail interest in Lanka Cement (Rs. 18 Million) and Sri Lanka Telecom (Rs 17 Million).

Reporting results for the day were Lanka Hospitals (LHCL), the owners of Apollo Hospital in Colombo. The company's reported a 12% increase in turnover for the 3 months ending December 2007 to RS 49.7 million, and a reduced quarterly loss by 27% to Rs 51.1 million. LHCL, which offers premium medical services, is owned by Sri Lanka Insurance which in turn is a subsidiary of Harry Jayawardena controlled Distilleries Corporation Sri Lanka.

Kelsey Developments (KHL), the listed homebuilder, reported a loss of Rs 24 million from a profit of Rs. 9 million for the 9 months ending December 2007. Group turnover which has declined by 12% for the same period to Rs 320 million is a reflection of the construction and housing sectors in general which have seen sales drop and cost of raw materials and finance costs increase in the recent past.

Brandix Lanka owned Kuruwita Textile has reported a turnaround from half-year losses of Rs 75 million to a profit of Rs 73 million for the 3 months to Dec 2007. This, though an improvement is still a drop from Rs 181 million the company made for the same period ending 2006.

The increases in 3rd quarter profits help reduce the total loss for the 9 month to Rs 1.8 million rupees. The company expects to continue profitably despite the looming recession in the US, one of its largest markets and rising costs of production locally.

Source: First Guardian Equities

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