Bourse driven onwards by banking sector counters

By Hiran H. Senewiratne

The stock market got off to a positive start yesterday mainly due to banking sector counters performing well throughout the day. A Central Bank’s recent analysis revealed that the local banking sector has a healthy outlook and need not require any capital infusion from the government to run and operate. This factor stimulated the market, analysts said.

The stock market performed on a bullish note throughout the day. Both local and foreign investors were active on the trading floor and the banking sector counters moved the market to positive territory, thus creating a healthy sentiment for the market.

Amid those developments both indices moved upwards. All Share Price Index went up by 73.59 points while S and P SL20 index rose by 40.4 points. Turnover stood at Rs 3.1 billion with four crossings. Those crossings were reported in Melstacope, which crossed 3.5 million shares to the tune of Re 315 million; its shares traded at Rs 90, HNB 870,000 shares crossed for Rs 169.5 million; its shares traded at Rs 195, Sampath Bank 1.5 million shares crossed for Rs 118 million; its shares traded at Rs 79 and CIC Holdings 450,000 shares crossed to tune of Rs 34.2 million; its shares sold at Rs 36.20.

In the retail market top five companies that mainly contributed to the turnover were; Sampath Bank Rs 28.5million (3.6 million shares traded), HNB Rs. 247 million (1.2 million shares traded), JKH Rs 166 million (832,000 shares traded), DFCC Rs 103 million (1.2 million shares traded) and CIC Holdings Rs 87.3 million (1.4 million shares traded). During the day 73.1 million share volumes changed hands in 18000 transactions.

Yesterday the rupee opened at Rs 299.85/95 to the US dollar in the spot forex market, from 299.80/95 the previous day, dealers said, while bond yields were up. A bond maturing on 15.12.2026 was quoted stable at 11.35/45 percent. A bond maturing on 15.09.2027 was quoted at 11.95/12.05 percent from 11.90/12.00 percent. A bond maturing on 15.12.2028 was quoted at 12.20/25 percent from 12.15/20 percent.