Bull run in bourse continues; TB yields decline by more than 100 basis points

By Hiran H. Senewiratne

The stock market yesterday continued its positive momentum amid a two- year high turnover of Rs. 12.2 billion caused by an internal transfer of 61.9 million shares or a 4.5 percent stake in JKH by Canada’s Fairfax amounting to Rs 11.3 billion the previous day, stock market analysts said.

Another reason for the market to be bullish was that all three Treasury Bond yields declined by more than 100 basis points, thus creating a positive sentiment for the market, analysts explained. Amid those developments both indices moved upwards. All Share Price Index went up by 19.35 points, while the S and P SL-20 rose by 19.1 points. Turnover stood at Rs 1.1 billion with three crossings.

Those crossings were reported in LB Finance, which crossed 1.2 million shares to the tune of Rs 73.5 million; its shares traded at Rs 61, Melstacope’s 400,000 shares crossed for Rs 33.6 million; its shares sold at Rs 84, JKH 150,000 shares crossed to the tune of Rs 27.6 million; it shares traded at Rs 180 and NDB 400,000 shares crossed for Rs 25.4 million; its shares sold at Rs 63.60.

In the retail market top seven companies that mainly contributed to the turnover were; Capital Alliance Rs 104 million (2 million shares traded), JKH Rs 102 million (153,000 shares traded), Sampath Bank Rs 92.5 million (1.1 million shares traded), Melstacope Rs 54.9 million (656,000 shares traded), First Capital Holdings Rs 53.1 million (1.7 million shares traded), Distilleries Rs 51.1 million (1.9 million shares traded) and Expolanka Holdings Rs 48.7 million (374,000 shares traded). During the day, Rs. 33.1 million shares crossed in 10300 transactions.

It is said that mixed interest was observed in Capital Alliance, First Capital Holdings and Expolanka Holdings, while retail interest was noted in Browns Investments, Marawila Resorts and Hela Apparel Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to JKH), while the sector index gained 0.76 percent. The share price of JKH increased by 75 cents to reach Rs. 183.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LB Finance, Capital Alliance and First Capital Holdings), while the sector index increased by 0.40%. The share price of LB Finance closed flat at Rs. 61. The share price of Capital Alliance recorded a gain of Rs. 3.10 to reach Rs. 48.10. The share price of First Capital Holdings appreciated by Rs. 1.80 to reach Rs. 30.50.Yesterday the US dollar buying rate was Rs 308.49 and selling rate Rs 318.58.