Bourse facing a degree of turbulence triggered by political uncertainty

By Hiran H.Senewiratne

The stock market is currently experiencing a degree of turbulence due to political uncertainty stemming from public perceptions that elections will not be held as scheduled. Consequently, investors are a bit worried about investing in the stock market, market analysts explained.

Amid those developments both indices moved downwards. The All Share Price Index went down by 26.74 points and S and P SL20 declined by 7.39 points. Turnover stood at Rs 711 million with one crossing. The crossing was reported in JKH, which crossed 500,000 shares to the tune of Rs 94.1 million; its shares traded at Rs 181.25.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 82 million (436,000 shares traded), Commercial Bank Rs 71.8 million (803,000 shares traded), Sampath Bank Rs 57.8 million (801,000 shares traded), Capital Alliance Rs 25.8 million (685,000 shares traded), Expolanka Holdings Rs 31.2 million (231,000 shares traded), Vallibel Power Erathna Rs 25.7 million (3.3 million shares traded) and Dialog Axiata Rs 21.4 million (2.2 million shares traded). During the day 28.6 million share volumes changed hands in 7000 transactions.

It is said that net worth and institutional investor participation was noted in JKH and Distilleries. Mixed interest was observed in Expolanka Holdings, Sampath Bank and Capital Alliance, while retail interest was noted in Dialog Axiata, Browns Investments and Softlogic Capital.

The Capital Goods sector was the top contributor to the market turnover (due to JKH), while the sector index edged up by 0.06 percent. The share price of JKH gained Rs 1.25 to reach Rs 187.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Distilleries), while the sector index increased by 0.23 percent. The share price of Distilleries moved down by 20 cents to settle at Rs. 25.80.

Expolanka Holdings, Commercial Bank, Capital Alliance and Sampath Bank were also included among the top turnover contributors.

Yesterday the rupee traded at Rs 313.75/314.00 to the US dollar from Rs 313.45/75 on Monday, dealers said.

Bond yields were down. A bond maturing on 01.02.2026 was quoted stable at 10.80/90 percent. A bond maturing on 15.09.2027 was quoted at 11.55/65 percent from 11.65/75 percent. A bond maturing on 15.03.2028 was quoted at 11.85/95 percent from 12.00/10 percent.