CSE positive in the wake of info on sovereign bond repayment by SL

By Hiran H.Senewiratne

Trading activities at the Colombo Stock Exchange became positive yesterday with the receiving of information that Sri Lanka is to make a bullet repayment on a billion US$ sovereign bond that is falling due this month (July) and which could maintain the country’s record of not having defaulted on debt, stock market analysts said.

It is said that the Central Bank said in a report they have confirmed and arranged funds to make a sovereign bond payment this month. This rings positive signals for the market, which resulted in the market travelling on a positive path, stock market analysts said.

At the beginning the market resumed in a sluggish manner due to heavy selling pressure. But the much talked about LOLC Development Finance or NIFL share price starting to decline is also one of the reasons for the market to be sluggish yesterday after the company going through a bizarre share price rise during the last few trading days. However, its shares started trading at Rs. 524.50 and during the day fell down to Rs. 393.50 and later settled at Rs. 454. NIFL is also index heavy.

Amid those developments both CSE indices moved upwards to positive territory. All Share Price Index went up by 17.95 points and S and P SL20 by 14.48. Turnover stood at Rs 1.78 billion with two crossings. Crossings were reported in HNB (Non Voting), which crossed 697,000 shares to the tune of Rs 76.7 million and its shares traded at Rs 110 and HNB ( Voting) 438,000 shares crossed for Rs 58.7 million, its shares traded at Rs 131.

In the retail market five companies that mainly contributed to the turnover were L.B Finance Rs 500 million (8.2 million shares traded), LOLC Holdings Rs 155 million (396,000 shares traded), Sampath Bank Rs 84.9 million (1.6 million shares traded)m HNB (Non Voting) Rs 78.9 million (718,000 shares traded) and Browns Investments Rs 66.5 million (11 million shares traded).

During the day NIFL stock prices moved down by 13 percent or Rs 70.50. However LOLC and Browns Investments were the main positive contributors to the All Share Price Index. Their share prices also increased, ie. LOLC share price increased Rs 9.50 or 2.5 percent, which moved its price to Rs 398 from Rs 388.50 and Browns Investments appreciated its share price by 20 cent or 3.4 percent. Its share price started trading at Rs 5.90 and at the end of the day it shot up to Rs 6.10. LOLC contributed 10 points and Browns Investments contributed 6 points respectively to the All Share Price Index during the day’s trading. It is said that 53 million share volumes changed hands in 15963 transactions.