CSE gains over 1.5 per cent within first hour of trading

By Hiran H.Senewiratne

CSE trading activities ended on a positive note yesterday. The market experienced a decline for five consecutive days earlier but it bounced back for reasons that were not immediately ascertainable, stock market analysts said.

The stock market gained over 1.5 per cent within the first hour of trading, recovering some of the losses incurred during the previous five-sessions, as the country, after long delays, brought the 21st Amendment to parliament, while IMF discussions began in Colombo.

A top market analyst said that the CSE moved on the positives of the 21st Amendment being brought to the parliament and a possible IMF deal. However, what’s unfolding in parliament will be crucial for the second-half of market trade, he said.

During the parliament session, Sri Lanka’s main opposition Samagi Jana Balavegaya (SJB) and the JVP-led National People’s Power (NPP) said they will be boycotting parliament sittings for a week as parliament has become a talk shop and a waste of time since it offers no solutions to the people suffering outside.

However, market analysts see this as a crucial point since the passing of the 21st Amendment will be delayed yet again.

Amid those developments both indices moved upwards. The All- Share Price Index went up by 77.7 points and S and P SL20 rose by 43.28 points. Turnover stood at Rs 760.54 million and no crossings were secured during the day.

Top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 209 (1.2 million shares traded), Royal Ceramic Rs 119 million (4.5 million shares traded), Lanka IOC Rs 114 million (1.6 million shares traded), Browns Investments Rs 49.9 million (6.2 million shares traded), LOLC Finance Rs 32.4 million (4.5 million shares traded), Vallibel One Rs 18.3 million (4.5 million shares traded) and Aitken Spence Rs 17 million. During the day 30.85 million share volumes changed hands in 9700 transactions.

Yesterday, the Central Bank announced US dollar buying rate was Rs 357.28 and the selling rate Rs 367.73. A guidance rate for interbank transactions announced by the Central Bank was dropped by one rupee to Rs 361.75 from Rs 360.75, as forex shortages and liquidity injections continued.