CSE bounces back despite SL’s dismal Q1 growth stats

By Hiran H.Senewiratne

The CSE did not react yesterday to the survey done by the US Consumer Confidence Survey, when the US and all Asian stock markets were recorded as performing negatively, stock market analysts said.

The US survey revealed that United States’ consumer confidence edged lower in May as Americans’ view of their present and future prospects dimmed in the midst of persistent inflation.

The Conference Board said on Tuesday that its consumer confidence index dipped to 106.4 in May, still a strong reading from 108.6 in April.

Amid those developments the CSE bounced back following the previous days’ dip without a proper fundamental base. However, the economy in the first quarter had contracted by 1.6 per cent, the Department of Census and Statistics (DCS) revealed yesterday.

It was confirming that the country was in bad shape long before the current crisis emerged. The dismal performance in the first quarter is despite the 2021 fourth quarter registering a 1.8% growth, despite the COVID-19 pandemic and 3.3 per cent growth overall last year. In 2021 1Q the economy grew by 4%.

Agriculture and Industrial sectors suffered contractions of 6.8 per cent and 4.7 per cent respectively in 1Q of 2022, while the Service sector recorded a trivial expansion of 0.7per cent when compared to these values in the first quarter of year 2021. This would likely affect listed companies that engaged in the agriculture and industrial sectors, market analysts said.

Amid those developments both indices moved upwards. All Share Price Index went up by 53.2 points and S and P SL20 rose by 25.2 points. Turnover stood at Rs 778 million with three crossings. Those crossings were reported in Lanka IOC, which crossed 1.7 million shares to the tune of Rs 115.5 million and its shares traded at Rs 68, Print Care two million shares crossed to the tune of Rs 60 million; its shares traded at Rs 30 and Access Engineering 2.5 million shares crossed to the tune of Rs 25 million; its shares traded at Rs 10.

In the retail market, top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 149.2 million (151,000 shares traded), Lanka IOC Rs 84.4 million (1.2 million shares traded), HNB Rs 61.4 million (786,000 shares traded), Browns Investments Rs 47.5 million (6.3 million shares traded), Vallibel One Rs 26.6 million (one million shares traded), LOLC Finance Rs 16.1 million (2.4 million shares traded) and Sampath Bank 14.8 million (494,000 shares traded). During the day 34.7 million share volumes changed hands in 8000 transactions.

Yesterday the Central Bank announced the US dollar rate. Its buying rate was Rs 355.81 and the selling rate Rs 367.07.