CSE bounces back; fresh buying interest during latter half of the day

By Hiran H.Senewiratne

CSE trading activities were positive from the beginning of yesterday but by mid-day selling pressure was reported and during the latter part of the day the stock market witnessed fresh buying interest. However, the market bounced bank yesterday since on the previous day it suffered one of its steepest falls with Rs. 146 billion in value being wiped off as investors resorted to panic selling while the more optimistic questioned their motive, stock market analysts said.

Further, net foreign selling increased on the previous day to Rs. 697 million, pushing the year- to- date outflow to over Rs. 42 billion to Rs. 42.5 billion. Recent biggest gainers were obvious contributors to the previous day’s fall. Consequently, with the bounce, the market was up by 2.13 percent and fresh buying interest was witnessed despite the country’s political and economic woes, analysts said.

Companies that mainly contributed to the All Share Price Index were Expolanka (38.3 points), LOLC (17.8 points) and Commercial Leasing (10 points).

Amid those developments both indices moved up. All Share Price Index went up by 180 points and S and P SL20 rose by 51.3 points. Turnover stood at Rs 3.5 billion with two crossings. Those two crossings were reported in Nestle Lanka, where 100,000 shares crossed to the tune of Rs 120 million, its shares traded at Rs 1200 and Hemas Holdings 281,000 shares crossed for Rs 20.2 million, its shares fetching Rs. 72.

In the retail market, five companies that mainly contributed to the turnover were, Expolanka Holdings Rs 1.59 billion (10.3 million shares traded), Browns Investments Rs 541 million (60.2 million shares traded), LOLC Rs 124 million (242,000 shares traded), HNB (Non Voting) Rs 116 million (898,000 shares traded) and TJ Lanka Rs 75 million (1.8 million shares traded). During the day 148 million share volumes changed hands in 25000 transactions.

It is said high net worth and institutional investor participation was noted in Hayleys and Hemas Holdings. Mixed interest was observed in LOLC Holdings, Royal Ceramics and Teejay Lanka, while retail interest was noted in Browns Investments, Industrial Asphalts and Expolanka Holdings.

Meanwhile, the current USD to rupee exchange rate is Rs 199.49 per 1 US dollar.