Considerable lift for export business shares

By Hiran H.Senewiratne

CSE trading started off on a negative note yesterday after the Central bank raised key policy rates by 100 basis points along with some other tightening measures. But later the market turned positive, following rumours that the Central Bank would allow a free float of the rupee against the US dollar, which would benefit companies that are into the export business, stock market analysts said.

Amid those developments blue chip counters witnessed substantial gains, especially Expolanka Holdings. With the selling of stocks improving in the latter part of the day, all companies’ share prices appreciated by below five per cent. Both indices moved upwards. The All- Share Price Index went up by 80.8 points and S and P SL20 rose by 55.9 points. Turnover stood at Rs 3 billion with two crossings. The turnover level improved from the previous day’s though it’s below the average turnover level of Rs 3.5 billion.

The crossings that were reported during the day were, JKH, which crossed 1.38 million shares to the tune of Rs 199.6 million; its shares traded at Rs 144 and Hemas Holdings, which crossed 660,000 shares to the tune of Rs 40.9 million; its shares traded at Rs 62.

In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 507 million (1.8 million shares traded), LOLC Holdings Rs 384 million (403,000 shares traded), Commercial Leasing and Finance Rs 346 million (7.3 million shares traded), Browns Investments Rs 247 million (21.6 million shares traded), Lanka IOC Rs 160 million (2.5 million shares traded), LOLC Finance Rs 115 million (5.3 million shares traded) and Royal Ceramic Rs 100 million (1.7 million shares traded). During the day 77.6 million shares changed hands in 23000 transactions.

It is said that high net worth and institutional investor participation was noted in Browns Investments, Teejay Lanka and LOLC Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Commercial Leasing and Finance, while retail interest was noted in Softlogic Capital, SMB Leasing and LOLC Finance.

Yesterday, the US dollar was quoted at Rs 203.67, which was the Central Bank controlled price to prevent price escalations of essential imports. The actual price would be at the Rs 240 level. However, Central Bank Governor Ajith Nivard Cabraal said that this controlled price is suitable, since it has no harmful impact on the economy.