Basis points issue slackens share trading

By Hiran H.Senewiratne

CSE shares were trading up and positive last morning but that momentum could not be sustained for long because investors expected the Central Bank to cut policy rates by 200 basis points but they ended up with only 100 basis points.

The stock market on previous days managed to close on the up despite a struggle amid low investor activity but the Central Bank is now maintaining a dovish monetary policy stance through which they have been able to maintain 1.3 percent inflation, thus resulting in cutting policy rates by 100 basis points, market analysts said.

Both CSE indices moved downwards. The All- Share Price Index went down by 37.84 points, while the S and P SL20 declined by 1.95 points. Turnover stood at Rs 672 million without any crossings.

In the retail market the top seven companies that mainly contributed to the turnover were, JKH Rs 115 million (604,000 shares traded), SLT Rs 54.9 million (590,000 shares traded), Capital Alliance Rs 52.9 million (739,000 shares traded), Asian Hotel Properties Rs 42.1 million (667,000 shares traded), Sampath Bank Rs 32.1 million (480,000 shares trade), PGP Glass Rs 22.7 million (859,000 shares traded) and Hayleys PLC Rs 17.3 million (191,000 shares traded). During the day 21.3 million share volumes changed hands in 9800 transactions. .

It is said high net worth and institutional investor participation was noted in JKH, Melstacorp and Dialog Axiata. Mixed interest was observed in Capital Alliance, First Capital Holdings and National Development Bank, while retail interest was noted in UB Finance Company, Softlogic Capital and Browns Investments.

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance, First Capital Holdings and Softlogic Capital). The share price of Capital Alliance gained Rs. 2.20 to reach Rs. 72.80.

The Capital Goods sector was the second highest contributor to the market turnover (due to JKH) while the sector index edged down by 0.06 percent. The share price of John Keells Holdings decreased by Rs. 1 to settle at Rs. 190.

Commercial Bank, LOLC and JKH shares were trading up, while Malwatte Valley Plantations, Melstacorp and United Motors Lanka shares were trading down.

Yesterday, the rupee opened at Rs 323.75/324.10 to the US dollar, dealers said.Bond yields were up. A bond maturing on 01.08.2026 was quoted at 15.15/40 percent up from Wednesday’s close at 14.95/15.10 percent. A bond maturing on 01.05.2028 was quoted at 14.30/45 percent up from 14.10/25 percent.