Bourse enters red territory; investors apprehensive about budget

By Hiran H.Senewiratne

Both stock market indices opened with mixed reactions last morning but trading reverted to the red at the end of the day’s trading as investors awaited the budget with some apprehensions, while keeping an eye on macro-economic developments, market analysts said.

The stock market did not react in a positive manner to the IMF announcement on the staff level agreement. Apart from that, macro- economic updates are also not conducive to the market to move ahead, analysts said. “We see that the financial sector which had moved up in value in the last few days is falling now. The market is showing very stagnant conditions, an analyst said.

Consequently, the All- Share Price Index was down by 165.9 points, while the S&P SL20 declined by 34.30 points. Turnover stood at Rs 920 million with four crossings. Those crossings were reported in RIL Properties, which crossed 35 million shares to the tune of Rs 152 million; its shares traded at Rs 6.50, Browns Investments 4 million shares crossed for Rs 25.8 million; its shares traded at Rs 5.20 and JKH 105,000 shares crossed for Rs 192.75.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 176 million (912, 000 shares traded), First Capital Holdings Rs 84 million (1.85 million shares traded), Capital Alliance Rs 74 million (1.4 million shares traded), Melstacope Rs 37.3 million (484,000 shares traded), Tokyo Cement (Non- Voting) Rs 31 million (515,000 shares traded), Hayleys Rs 21.5 million (263,000 shares traded) and Lanka IOC Rs 20.4 million (209,000 shares traded). During the day 56.8 million share volumes changed hands in 9000 transactions.

Yesterday the rupee opened at Rs 327.30/60 to the US dollar, after closing at Rs 327.40/60 on the previous day, dealers said.

Bond yields were up. A bond maturing on 01.08.2026 was quoted at 14.95/15.00 percent from 14.90/15.05 percent. A bond maturing on 01.07.2028 was quoted at 14.70/80 percent from Tuesday’s 14.60/75 percent.