Anticipated global recession dampens local share market; indices down

By Hiran H.Senewiratne

The CSE performed negatively yesterday due to internal political instability and the global recession situation expected towards the year end. This resulted in all equity markets coming down yesterday, including that in Sri Lanka, stock market analysts said.

Last Friday, the Dow Jones Industrial Average Index and S and P SL20 index were down. Due to that all Asian and European stock markets or equity markets performed negatively yesterday.

Amid those developments both indices performed negatively. All Share Price Index went down by 82.4 points and S and P SL20 declined by 16.3 points. Turnover stood at Rs 744 million with a crossing. The crossing was reported in Melstacorp, which crossed 2.2 million shares to the tune of Rs 90.2 million; its shares traded at Rs 41.

In the retail market top seven companies that mainly contributed to the turnover were; Lanka IOC Rs 100.7 million (1.2 million shares traded), Browns Investments Rs 86.7 million (11.7 million shares traded), Hayleys Rs 57.4 million (795,000 shares traded), Expolanka Holdings Rs 44.6 million (256,000 shares traded), CIC (Non- Voting) Rs 29.4 million (one million shares traded), EML Consultants Rs 28.9 million (5.7 million shares traded) and JKH Rs 23.9 million (199,000 shares traded). During the day 46 million share volumes changed hands in 11000 transactions.

However, the secondary bond market yields decreased considerably during the week ending 22 July 2022, continuing the downward momentum witnessed over the latter part of the previous week. The increase in demand at the weekly Treasury bills auction which saw weighted average rates decreasing across the board for the first time in five weeks coupled with an improvement in investor sentiment were seen as the reasons that led to the downward momentum.

Yesterday, the Central Bank announced US dollar buying rate was Rs 357.46 and the selling rate Rs. 368.50. It is said that the rupee depreciation against the US dollar has been controlled due to the Central Bank’s prudent monetary policies.