CSE indices continue to close on negative note

By Hiran H.Senewiratne

The CSE  yesterday failed to sustain the emphatic revival seen this week as indices closed on a negative  note, while turnover also continues to struggle to maintain its average level. But stockbrokers believe that the market will likely pick up or revive  with the finalising of the much awaited Chinese loan of US $ 1.5 billion.

State Minister of Money & Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal infomed the media that a US 1.5 billion loan will  be granted to the country soon, which would give some relief in the current crisis.    

Further, stock market reverted to red territory, continuing the trend of the day before for the seventh  consecutive week and unable to reach this year’s average turnover market. Turnover amounted to Rs. 657 million, with no crossings. 

In the retail market top five companies that mainly contributed to the turnover were,  Browns Investments Rs. 72.5 million (13.1 million shares traded), Dipped Products Rs. 65.8 million (1.3 million shares traded), HNB Rs. 51.3 million (400,000 shares traded), Expolanka Rs. 48.7 million (one million shares traded) and CIC Holdings Rs. 29.9 million (126,000 shares traded). During the day 31.6 million share volumes changed hands in 10,000 tradings.  

Index spiked, followed by a short-lived up-trend within the first hours of trading. Thereafter, the market witnessed a down-trend for the rest of the session. Both indices moved downwards. All Share Price Index went down by  76.91 points and S and P SL20 went down by  30.99 points. 

It is said that high net worth and institutional investor participation was noted in JKH and Hayleys. Mixed interest was observed in Dipped Products and Vallibel One, while retail interest was noted in Browns Investments and Industrial Asphalts.

The Sri Lanka’s rupee quoted steady at 197.30/197.40 levels to the US dollar in the one-week forwards market on Tuesday, while bond yields remained unchanged, dealers said. The rupee last closed in the one- week forward market at 197/197.50 to the US dollar on Tuesday.