CSE bullish on Chinese loan news

By Hiran H.Senewiratne 

CSE trading activities were somewhat bullish throughout  yesterday following the positive news on the Chinese government-backed twitter page ‘BRISL’,on the much awaited  Chinese loan of US $ 500 million and currency swap of around another US $ 600 million, stock market analysts said.

The market went through a dip last week  and as a result a   group of long-term equity investors  expressed optimism of an improved outlook for the CSE  as well as the economy following a meeting with State Minister of Money, Capital Markets and Public Enterprises Reform Nivard Cabraal on Saturday. 

It is said that the stock market has lost Rs. 705 billion in value since the end of January. The All Share Price Index had declined by 1,614 points or 18.6 percent  and the S&PSL20 had dipped by 723 points or 20.5 percent between February 1 and March 5. 

In January, the Colombo Bourse rose to dizzy heights with market capitalisation swelling by Rs. 829 billion on the back of ASPI gaining by 28 percent  and the S&PSL20 shooting up by 33 percent. Year to date the ASPI is up 4 percent  and S&PSL20 up 5.8 percent. 

Amid those developments both indices moved upwards.  All Share Price Index was up yesterday by 285.2 points and S and S and P SL20 went up by 131/29 points. The turnover stood at Rs. 2.7  billion with a single crossing. The crossing was reported in Seylan Bank (Non Voting) which crossed 500,000 shares to the tune of Rs. 22 million, its shares traded at Rs. 44.

In the retail market top five contributors to the turnover were, Expolanka Rs. 395.9 million (8.45 million shares traded), Dipped Products Rs. 315.7 million (6.62 million shares traded), LOLC Holdings Rs. 264.6 million (815,000 shares traded), Browns Investments Rs. 201.2 million (36.7 million shares traded) and JKH Rs. 189. 5 million (1.26 million shares traded). During the day 93.7 million share volumes changed hands in 23640 transactions.   

 Sri Lanka’s rupee was quoted steady at 196.75/197.00 levels to the US dollar in the one-week forwards market on Monday while bond yields remained unchanged, dealers said. The rupee last closed in the one- week forward market at 196.60/197.00 to the dollar on Friday.

In the secondary market bond yields remained unchanged while the overall market witnessed dull activity, dealers said.