Bourse turns positive in the wake of CBSL’s February 2024, Monetary Policy Report release

By Hiran H.Senewiratne

Stock market activities turned positive yesterday subsequent to the release of the Central Bank’s Monetary Policy Report – February 2024, which revealed that Sri Lanka is heading for stability in the coming months, thus creating a bullish sentiment in the market, market analysts said.Consequently, both market indices moved upwards.

A crossing in National Development Bank shares contributed Rs 626 million to the day’s turnover and a share closed up at Rs. 65.10. The market was up mainly because of trades in the banking sector (Rs 769 million), a market participant said. “This is dividend season for the banks. So there is some interest there, market analysts said.

“Also with interest rates coming down, interest in the equity market is returning, market sources said. The bigger banks all closed up: Sampath Bank (Rs 73.20), Commercial Bank of Ceylon (Rs 89.50), DFCC Bank (Rs 78.80), and HNB (up at Rs 163.00).

All Share Price Index swent up by 17.86 points while S and P SL20 rose by 19.85 points. Turnover stood at Rs 1.3 billion with two crossings. Those crossings were reported in NDB, which crossed 9.7 million shares to the tune of Rs 626 million; its share price was Rs 64 and JKH 125,000 shares crossed for Rs 23.8 million; its shares traded at Rs 189.

In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 95.2 million (709,000 shares traded), Union Assurance Rs 71.6 million (1.6 million shares traded), HNB Rs 53 million (324,000 shares traded), JKH Rs 43 million (227,000 shares traded), Sampath Bank Rs 42.1 million (576,000 shares traded), Browns Investments Rs 39.8 million (9.2 million shares traded) and Dialog Axiata Rs 31.8 million (3.2 million shares traded). During the day 41 million share volumes changed hands in 7000 transactions.

Other sectors that attracted investor interest were Capital Goods (110mn), and Food, Beverage and Tobacco (108mn). Companies that saw active volumes traded were Union Assurance PLC (71mn); the share closed up at 45.00. And Expolanka Holdings PLC (95mn), whose shares closed up at 134.75.Yesterday, the US dollar buying rate was Rs 307.70 and selling rate Rs 317.76.