CSE in positive mode in spite of GSP+ concession under review

By Hiran H.Senewiratne 

The Colombo Stock Exchange (CSE) on the previous day  set a new benchmark and due to that  investors remained bullish yesterday for the third  consecutive day with robust turnover though some profit-taking was evident.

However, CSE  yesterday did not negatively react  to  Tamil National Alliance (TNA) MP M A Sumanthiran’s comment to a website  that it was his belief that the European parliament has already decided to withdraw access to the Generalised Scheme of Preferences Plus (GSP+) concession as per a resolution passed in June this year, market analysts said.

Sri Lanka is at risk of losing access to a European trade concession worth over 500 million US dollars by April 2022 if the government does not take drastic measures to address human rights concerns, an opposition lawmaker said.  This would happen if  the government makes some dramatic changes to address human rights issues, the country is likely to lose GSP+ in April next year,” he said. Further, stock market investors are now adopting cautious stance till the  Central Bank Governor Ajith Nivard Cabraal announces a short term road map for the development of the capital market, stock market analysts said.

Amid those developments both indices moved upwards. All Share Price Index up  102.1 points and S and P SL20 up by 67.1 points. Turnover stood at Rs 5.9 billion with three crossings. Those crossings were reported in Browns and Company, which crossed 800,000 shares to the tune of Rs 160 million and its share price traded at Rs 200, JKH one million shares crossed for Rs 141 million and its share price traded at Rs 141, TJ Lanka 500,000 shares crossed for Rs 21.5 million and its share price traded at Rs 43.

In the retail market top five companies that mainly contributed to the turnover were Browns Investments Rs 1.4 billion (137 million shares traded), Expolanka Rs 1.18 billion (six million shares traded), LOLC Holdings Rs 729 million (1.2 million shares traded), JKH Rs 466 million (3.2 million shares traded) and Royal Ceramic Rs 204 million (4.4 million shares traded). During the day 238 million share volume changed hands in 35000 transactions.

It said high net worth and institutional investor participation was noted in Browns Investments, Hayleys and JKH. Mixed interest was observed in LOLC Holdings, Commercial Leasing & Finance and Royal Ceramics whilst retail interest was noted in Lanka Orix Finance, Galadari Hotels and Expolanka Holdings. The US Dollar traded at  Rs 199.75 and the US dollar has been settled at a maximum rate of Rs 202 with the controlling mechanism adopted by the Central Bank of Sri Lanka.