CSE investor sentiment on the uptick despite low turnover

By Hiran H. Senewiratne

CSE investor sentiment improved yesterday in spite of a low turnover level following Central Bank Governor Dr. Nandalal Weerasinghe’s statement that the country was heading for steady economic growth consequent to the IMF bailout.CSE shares edged up during mid- day trade. However, the market is moving on slower trends due to the holiday season, an analyst said.

Amid those developments both indices moved upwards. The All- Share Price Index went up by 82.93 points and S and P SL20 rose by 34.6 points. Turnover stood at Rs 812 million with one crossing. The crossing was reported in Melstacorp, which crossed 417,000 to the tune of Rs 22.7 million; its shares traded at Rs 54.30.

In the retail market top seven companies that mainly contributed to the turnover were; Tokyo Cement (Non -Voting) Rs 99.6 million (2.1 million shares traded), ACL Cables Rs 80.8 million (964,000 shares traded), SLT Rs 72.1 million (734,000 shares traded), Expolanka Holdings Rs 35.7 million (247,000 shares traded), Sampath Bank Rs 27.9 million (548,000 shares traded), Lanka IOC Rs 25.3 million (150,000 shares traded) and Windfall Rs 24.8 million (1.5 million shares traded). During the day 51 million share volumes changed hands in 38138 transactions.

It is said high net worth and institutional investor participation was noted in Cargills, Colombo City Holdings and JKH. Mixed interest was observed in Melstacorp, Expolanka Holdings and Lanka IOC, while retail interest was noted in Browns Investments, Dialog Axiata and LOLC Finance.

The Food & Staples Retailing sector was the top contributor to the market turnover (due to Cargills and C T Holdings), while the sector index edged up by 0.12 per cent. The share price of Cargills closed flat at Rs. 233. The share price of C T Holdings closed flat at Rs. 180.

The Capital Goods sector was the second highest contributor to the market turnover (due to JKH, while the sector index edged up by 0.08 per cent. The share price of John Keells Holdings recorded a gain of 50 cents to reach Rs. 139.50.

Sri Lanka bonds plunged around 400 basis points yesterday after Central Bank Governor Nandalal Weerasinghe said re-structuring will be voluntary, dealers said. A bond maturing on 15.09.2027 traded at 25.00 per cent Thursday from the last close of around 28.50/29.00 per cent, dealers said.Yesterday, the Central Bank’s US dollar buying rate was Rs 313.29 and the selling rate Rs 330.56.