Investor anxiety over IMF’s third tranche triggers panic-selling of shares

By Hiran H.Senewiratne

The stock market was gripped by panic- selling of shares yesterday as investors agonized over the possibility of Sri Lanka being unable to obtain the third IMF tranche of US $ 333 million, following the second review, stock market analysts said.

The IMF expects Sri Lanka to reach a deal with commercial creditors by the next review, Senior Mission Chief Peter Breuer said last week.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 83 points and S and P SL20 declined by 22 points. Turnover stood at Rs 700 million minus crossings.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 210 million (1.1 million shares traded), Capital Alliance Rs 46.1 million (971,000 shares traded), Chevron Lubricants Rs 35.7 million (380,000 shares traded), Lanka IOC Rs 29.4 million (297,000 shares traded), Browns Investments Rs 26.2 million (6.1 million shares traded), Expolanka Holdings Rs 25.7 million (191,000 shares traded) and Sampath Bank Rs 20.1 million (300,000 shares traded). During the day 29.8 million shares volumes changed hands in 5400 transactions.

It is said mixed interest was observed in JKH, Commercial Bank and Melstacorp, while retail interest was noted in Industrial Asphalts, Browns Investments and Kotagala Plantations.

The Utilities sector was the top contributor to the market turnover (due to Windforce), while the sector index gained 0.45%. The share price of Windforce increased by 10 cents to reach Rs. 19.40.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Renuka Foods and Melstacorp), while the sector index decreased. The share price of Renuka Foods gained 90 cents to reach Rs. 16.90. The share price of Melstacorp declined by 10 cents to hit Rs. 81.

Yesterday the rupee opened at Rs 319.85/320.10 to the US dollar from Rs 319.90/320.05 the previous day, dealers said.

Bond yields were broadly steady. A bond maturing on 01.02.2026 was quoted at 13.52/58 percent from 13.50/60 percent. A bond maturing on 15.03.2028 was quoted at 14.00/06 percent from 14.00/14.05 percent.