CSE indices fall to eight-week low; turnover slumps

By Hiran H.Senewiratne

Both CSE indices fell to an eight-week low yesterday while the day’s turnover also slumped to the lowest since the last week of August amid highly volatile market sentiments as economic uncertainties over new tax hikes dented the appetite for risky assets, market analysts said.The market saw a turnover of Rs 1.3 billion, its lowest since August 29, and lower than this year’s average turnover of Rs 3.2 billion. Further, both indices moved downwards. The All- Share Price Index went down by 51.8 points and S and P SL20 declined by 7.7 points.

Turnover stood at Rs 1.3 billion with two crossings. Those crossings were reported in JKH, which crossed 500,000 shares to the tune of Rs 64.8 million, its shares traded at Rs 129.50 and CIC Holdings 300,000 shares crossed to the tune of Rs 30.9 million and its shares fetched Rs 103.

In the retail market top seven companies that mainly contributed to the turnover were; Lanka IOC Rs 341 million (1.7 million shares traded), CIC Holdings Rs 96.1 million (949,000 shares traded), Expolanka Holdings Rs 94.3 million (631,000 shares traded), JKH Rs 75 million (580,000 shares traded), CIC Holdings (non-voting) Rs 73.9 million (one million shares traded), Agsta PLC Rs 45.7 million (2.3 million shares traded) and Lankem Development Rs 42.9 million (1.2 million shares traded). During the day 527 million share volumes changed hands in 15000 share transactions.

According to stock market analysts the market moved to red yet again on the back of heavy selling of retail favourites LIOC and Expolanka, its daily note, referring to Sri Lanka private fuel retailer, Lanka IOC and market heavyweight Expolanka. Profit booking in LIOC intensified as investors expected further price reductions in fuel as the country intents to procure oil from Russia at a possibly lower price.

Analysts also said the market is going through a volatile trend as some investors are on a wait-and-see approach, while others are booking profits. Foreign investors have been mainly on the buying side since the IMF signaled positive for a US $2.9 billion; 4-year deal provided Sri Lanka fulfills some challenging conditions, including tax hikes.Yesterday the Central Bank- announced US dollar buying rate was Rs 360.73 and the selling rate Rs 371.24.