CSE bounces back on positive investor sentiment; ease in inflation

By Hiran H.Senewiratne

CSE trading activities bounced back yesterday after a dip running into several consecutive days due to buying interest in the last half hour of the trading session for Expolanka Holdings. However, selling pressure was noted in Lanka IOC due to a probable revision in fuel prices, stock market analysts opined.

President Ranil Wickremesinghe’s comment at a forum of the Tea Factory Owners in Colombo recently on the positive nature of the IMF bail- out too created some investor confidence.

Buying interest noted in Expolanka Holdings during the last half an hour of the session pushed the stock market to positive or green territory. But the market was overall volatile due to macroeconomic uncertainties.

Expolanka Holdings’ share price moved up by 11 per cent or Rs 16.75. The price moved to Rs 172 from Rs 150.25 at the end of the day, stock market analysts said.

Amid those developments both indices moved upwards. The All- Share Price Index moved up by 32.9 points and S and P SL 20 was up by 40.9 points. Turnover stood at Rs 1.26 billion without a crossing. In the retail market, top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 489 million (2.9 million shares traded), Lanka IOC Rs 236 million (1.3 million shares traded), JKH Rs 55.5 million (423,000 shares traded), Melstacorp Rs 47.3 million (1.1 million shares traded), Browns Investments Rs 38.2 million (6.2 million shares traded), CW Mackie Rs 36.2 million (418,000 shares traded) and Hayleys Rs 29.5 million (382,000 shares traded). During the day 33 million share volumes changed hands in 13000 transactions.

Sri Lanka’s inflation in Colombo eased to 66 per cent in the 12-months to October 2022, from 69.8 per cent in September, with food prices falling 2.0 per cent in the month, data from the state statistics office showed.

The widely watched Colombo Consumer Price Index fell 0.4 per cent absolute to 243.8 points during the month of October. The food price index was up 85.6 per cent in the 12-months to October with the index falling 2.0 per cent. These developments created positive sentiment among investors, stock market analysts said.

It is said high net worth and institutional investor participation was noted in JKH. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Hemas Holdings, while retail interest was noted in Browns Investments, LOLC Finance and Muller & Phipps.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) while the sector index lost 6.81 per cent. The share price of Expolanka Holdings decreased by Rs. 11 (6.82%) to close at Rs. 150.25.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hemas Holdings), while the sector index decreased by 1.55 per cent. The share price of Hemas Holdings appreciated by one rupee (1.85per cent) to close at Rs. 55.10.

However, in the international arena it looks gloomy for the world, especially since Russia is trying to block the supply chain of Ukraine grain to the European and other global markets. This would negatively impact global stock markets in time to come, market analysts said.

Yesterday the Central Bank announced the US dollar buying rate as Rs 360.65 and the selling rate Rs 371.45.