CBSL decision on interest rates boosts share market

By Hiran H.Senewiratne

CSE trading activities started on a negative note due to profit- takings at the beginning but registered a positive stance with improving buying interests among investors yesterday, following a Central Bank decision to keep interest rates unchanged, stock market analysts said.

“By tightening monetary policy, we minimized the damage, CBSL Governor Dr. Nandalal Weerasinghe told the press after the Central Bank’s monthly monetary review meeting yesterday.

Amid those developments both indices moved upwards. The All-Share Price Index went up by 35.82 points and S and P SL20 rose by 25 points. Turnover stood at Rs 1.9 billion with two crossings. Those crossings were reported in Agstar PLC, which crossed 36 million shares to the tune of Rs 540 million, its shares traded at Rs 15 and Melstacorp 1.75 million shares crossed to the tune of Rs 89.25 million; its shares traded at Rs 51.

In the retail market top seven companies that mainly contributed to the turnover were; Lanka IOC Rs 291 million (1.1 million shares traded), Agstar PLC Rs 208 million (12.9 million shares traded), Expolanka Holdings Rs 109.6 million (574,000 shares traded), LOLC Holdings Rs 84.3 million (191,000 shares traded), Capital Alliance Rs 61.7 million (1.9 million shares traded), Royal Ceramic Rs 43.7 million (1.4 million shares traded) and Melstacorp Rs 42.4 million (842,000 shares traded). During the day 91.7 million share volumes changed hands in 16000 transactions.

During the day Agstar PLC was the highest contributor to the turnover with its crossing and retail market activities.