CSE records lowest turnover since Oct. 12, 2021; investors cautious

By Hiran H.Senewiratne

The CSE witnessed dull trading and recorded the lowest turnover after October 12, 2021 yesterday due to macro and micro economic uncertainties. Consequently, stock market investors adopted a-wait-and- see approach despite most companies recording positive quarterly results, especially blue- chip entities, stock market analysts said.

Some investors were worried about a possible fuel hike soon, which could have a direct impact on the cost of production, which, in turn could adversely affect the manufacturing sector. However, CSE trading activities, during the first half an hour, were positive but later due to profit- takings, especially in blue chip companies, the market turned negative. However, during the latter part of the day the market became positive, stock market analysts said.

On October 12, 2021 the market recorded the lowest turnover of Rs 2.05 billion and after 80 days the market recorded this year’s lowest turnover, which was Rs 2.25 billion. But both indices were marginally positive. The All- Share Price Index went up by 11.01 points and S and P SL20 rose by 14.13 points. Turnover stood at Rs 2.25 billion with a single crossing.

In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings, Rs 385 million (1.1 million shares traded), Vallibel One Rs 202 million (3.7 million shares traded), Sunshine Holdings Rs 136 million (2.5 million shares traded), Royal Ceramic Rs 122 million (1.7 million shares traded), Softlogic Life Insurance Rs 96.3 million (673,000 shares traded), Browns Investments Rs 90.9 million (5.3 million shares traded) and Vallibel One Rs 80.3 million (one million shares traded). During the day 72.9 million share volumes changed hands in 27000 transactions.

Yesterday the US dollar was quoted at Rs 203.23, which was the controlled price of the Central Bank. If the Central Bank allows a free float of the dollar, it would likely go up to the Rs 250 level, informed sources said.