CSE indices rise in the wake of reports of Sri Lanka’s strengthening reserves

By Hiran H.Senewiratne

CSE trading activities indicated negative sentiments during the early session of yesterday but later turned positive when Bangladesh said that they are to release a further $ 150 million out of the $ 200 million to Sri Lanka under the swap arrangement. Another $300 million is to come from the Chinese Development Bank, analysts said.

Amid those developments both CSE indices rose. ASPI went up by 142.60 points and the S and P SL20 rose by 65.36 points. Turnover stood at Rs. 10.80 billion with five crossings. Those were, Ambeon Holdings 200 million shares crossed for Rs. 100 million and its shares traded at Rs. 50, John Keells Holdings 500,000 shares crossed at Rs. 65 million, its shares traded at Rs. 130, Windforce 3.5 million shares crossed for Rs. 63.7 million, its shares traded at Rs. 18.20, Sampath Bank 590,000 shares crossed for Rs. 30.2 million, its shares fetched Rs. 51.50 and Sanasa Development Bank 405,000 shares crossed for Rs. 20 million, its shares traded at Rs. 49.50.

The retail tradings top five contributors were, Expolanka Holdings Rs. 4.9 billion, Browns Investments Rs. 1.78 billion, LOLC Holdings Rs. 717 million, Dipped Products Rs. 493 million and Hayleys Rs 458 million. During the day 228 million shares changed hands in 51000 trades.

Sri Lanka’s Central Bank had published an indicative spot rate of 210 to the US dollar on August 31, while adjusting a rate for telegraphic transfers in its website to widen the margin while banks published rates of Rs. 220/226. Sri Lanka does not have a functioning interbank spot market at the moment and banks are negotiating with importers and exporter over the counter leading to large margins in many cases, market participants say. The Central bank on Tuesday published a rate of 198.90/204.89 for telegraphic transfers on its website.

CSE has requested a root cause analysis from system provider Iron One Technologies Ltd., regarding a disruption to the order management system provided to four stockbroker firms during trading yesterday, which resulted in trading difficulties to clients of these firms.

“System providers are an integral element of a technologically-driven, smoothly functioning capital market, especially in the perspective of investor accessibility, the CSE said in a statement.

“The CSE therefore stresses the importance of system providers taking all possible proactive and preventative measures to provide seamless services and access to investors, it said.