CB Governor’s assurance drives banking sector stocks

By Hiran H. Senewiratne

The trading activites in the CSE yesterday started with a mild gain and later buying interest built up in the banking sector. Therefore, index weighted most of the banking sector counters including HNB, Sampath Bank, DFCC Commercial Bank and several other listed banks pushed up up market,yesterday

This was mainly due to the Central Bank Governor Dr. Nandalal Weerasinghe’s statement that Sri Lanka’s public bank deposits and stability of the banking system will be safeguarded in any optimization of domestic debt,

“There is speculation about the stability of public deposits and banking system stability,” Governor Weerasinghe said in a public forum.

“In any kind of debt optimization, we will ensure and safeguard banking system stability as well as the protection of public deposits.”

This assurance boosted the market which resulted in the banking sector performing well yesterday’s market, analysts said.

Amid those developments both indices moved upwards. All Share Price Index up by 62.1 points and S and P SL20up by 19.6 points. Turnover stood at Rs 589 million with a single crossing. The crossing took place in HNB, which crossed 200,000 shares to the tune of Rs 23.3 million and its share price traded at Rs 116.50.

In the retail market, the top seven companies that mainly contributed to the turnover were HNB Rs 75.7 million (645,000 shares traded), Lanka IOC Rs 59.9 million (398,000 shares traded), Softlogic Capital Rs 35.1 million (3.9 million shares traded). Browns Investments Rs 31.3 million (5.8 million shares traded), Dialog Axita Rs 30 million (2.7 million shares traded), Melstacope Rs 28.7million (532,000 shares traded) and Softlogic Life Rs 25.7 million (344,000 shares traded). During the day 45.3 million share volume changed hands in 10000 transactions.

Yesterday bond yields opened higher and the rupee opened at 315/316 against the US dollar in the spot market, dealers said. A bond maturing on 01.09.2027 closed at 28.75/85 percent, steady from 28.60/90 percent at yesterday’s close.

A bond maturing on 15.05.2026 closed at 30.60/75 percent up from 30.50/75 percent at yesterday’s close. The rupee opened at Rs 315/316 against the US dollar in the spot market appreciated from the last close at Rs 317.50/318.50