Banking and insurance counters spark interest amidst relatively low turnover

By Hiran H. Senewiratne

The stock market was positive throughout yesterday but the turnover level was not attractive due to the country’s political uncertainty, stock market analysts said.

“Rumours are going around about securing an IMF deal, since it was expected in March, an analyst said. Rumours on the IMF deal being concluded soon had sparked interests over banking and insurance counters, the analyst added.

The All- Share Price Index edged-up 34.2 points, while the most liquid index S&P SL20 was up 20.53 points. Turnover stood at Rs 1.27 billion with two crossings. Those crossings were reported in Lanka IOC, which crossed 406,000 shares to the tune of Rs 81.2 million, its shares traded at Rs 199.50 and Chevron Lubricants 211,000 shares crossed to the tune of Rs 20 million, its shares traded at Rs 95.

In retail market top seven companies that mainly contributed to the turnover were Lanka IOC Rs 168 million (843,000 shares traded), HNB Rs 76.4 million (724,000 shares traded), Sampath Bank Rs 75.7 million (1.5 million shares traded), Burkit Darah Rs 64.9 million (160,000 shares traded), Softlogic Capital Rs 60.5 million (5.5 million shares traded), JKH Rs 59.8 million (437,000 shares traded), JKH Rs 59.8 million (437,000 shares traded) and Expolanka Holdings Rs 51.3 million (287,000 shares traded). During the day 43 million share volumes changed hands in 12000 transactions.

It is said high net worth and institutional investor participation was noted in Lanka IOC, JKH and Aitken Spence. Mixed interest was observed in Hatton National Bank, Expolanka Holdings and Sampath Bank, while retail interest was noted in Union Bank, Softlogic Capital and SMB Leasing.

The banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank), while the sector index edged up by 0.06%. The share price of Hatton National Bank decreased by Rs. 2.75 (2.55%) to close at Rs. 105. The share price of Sampath Bank appreciated by Rs. 2.10 (4.23 per cent) to close at Rs. 51.70.

The Capital Goods sector was the second highest contributor to the market turnover (due to JKH) while the sector index decreased by 0.36 per cent. The share price of JKH moved down 75 cents to Rs. 135.

Lanka IOC and Expolanka Holdings were also included among the top turnover contributors. The share price of Lanka IOC dipped 25 cents to Rs. 198. The share price of Expolanka Holdings recorded a loss of Rs. 1.50 to close at Rs. 178.50.

Yesterday, the Central Bank’s US dollar buying rate was Rs 351.72 and the selling rate Rs 362.95. Sri Lankan rupee appreciated yesterday on improved sentiments over current and future foreign exchange reserves.