Bondholders’ transparency concerns hold up share market

By Hiran H. Senewiratne

Participation in the share market was quite low yesterday on the part of both foreign and local investors following bondholder concerns over transparency issues with regard to the external debt restructuring agreement, market analysts said.

Amid those developments both indices moved upwards slightly. The All- Share Price Index went up by 10.15 points and S and P SL20 rose by 13.63 points. Turnover stood Rs 430 million without any arranged transactions/crossings.

In the retail market top seven companies that mainly contributed to the turnover were; Sampath Bank Rs 58.8 million (825,000 shares traded), Distilleries Rs 53.5 million (1.9 million shares traded), Expolanka Holdings Rs 47.3 million (352,000 shares traded), Melstacope Rs 47.3 million (352,000 shares traded), JKH Rs 22.1 million (115,000 shares traded), Commercial Bank Rs 18.7 million (207,000 shares traded) and NTB Rs 17.8 million (169,000 shares traded). During the day 14.6 million share volumes changed hands in 5777 transactions.

Tess Agro PLC is proposing a rights issue of ordinary voting shares and ordinary non-voting shares. “The Board of Directors of Tess Agro PLC resolved to raise funds via a Rights Issue of Ordinary Voting Shares and Ordinary Non-Voting Shares to fulfill the funding requirements of the Company in the near future, the company said in a statement. At a 1 new for 3 existing ratio, 169,265,762 ordinary voting shares will be issued at Rs. 1 per share.

Yesterday the rupee opened at Rs 326.30/50 to the US dollar from Rs 326.70/327.00 the previous day, dealers said.

Meanwhile, bonds were down. A bond maturing on 01.06.2026 was quoted at 13.85/14.00 percent. A bond maturing on 15.01.2027 was quoted at 13.95/14.05 percent from 14.00/15 percent. A bond maturing on 01.07.2028 was quoted at 14.10/20 percent from 14.15/20 percent.