Assurances on DDR help CSE to get on to positive track

By Hiran H.Senewiratne

CSE trading yesterday got off on a negative note due to Sri Lanka’s domestic debt restructuring (DDR) but later became positive when the Sri Lanka Bankers Association received an assurance from Central Bank Governor Dr Nandalal Weerasinghe that DDR would not affect the banking sector, market analysts said.

President Ranil Wickremesinghe speaking at an event in Gampaha district said recently that the DDR “will have no impact on the membership balance of any public funds, including the Employees’ Provident Fund (EPF)”. The government will announce its DDR this week amid market speculation over instability in financial and banking sectors, analysts said.

Amid those positive developments, both indices moved upwards. The All- Share Price Index went up by 80.76 points and S and P SL20 rose by 23.9 points. Turnover stood at Rs 2.25 billion with six crossings. Those crossings were reported in JKH, which crossed 1.4 million shares to the tune of Rs 221 million and its shares traded at Rs 150, Seylan Bank 4.4 million shares crossed for Rs 153.9 million; its shares traded at Rs 35, HNB 590,000 shares crossed for Rs 81.4 million ; its shares traded at Rs 138 and Access Engineering 3.1 million shares crossed for Rs 50.5 million; its shares traded at Rs 16.30, TJ Lanka 1.5 million shares crossed to the tune of Rs 45 million; its share fetched Rs 30 and Browns Investments 7.2 million share crossed to the tune of Rs 40.3 million; its shares traded at Rs 5.60.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 312 million (two million shares traded), Browns Investments Rs 165 million (28.4 million shares traded), LOLC Finance Rs 145 million (27.3 million shares traded), HNB Rs 97.7 million (696,000 shares traded), Lanka IOC Rs 69.4 million (531,000 shares traded), Sampath Bank Rs 62.9 million (941,000 shares traded) and Keells Hotel Rs 50.9 million (2.9 million shares traded). During the day 119.8 million shares changed hands in 15000 transactions.

Treasury Bill auction was not over- subscribed, market analysts said. Yesterday, the Central Bank’s US dollar buying rate was Rs 301.15 and selling rate Rs 316.67.