CSE recovers somewhat in the wake of inflation declines

By Hiran H. Senewiratne

The CSE, following several days of decline, registered some recovery but this proved inadequate for both indices to move into green territory yesterday. One reason for the market to show some slight improvement was the Central Bank announcement that inflation had come down slightly, market analysts said.

According to the Central Bank, the Consumer Price Index stood at 65 per cent. Food inflation came down to 69.8 per cent in November from 80.9 per cent in October and Non Food Inflation came down to 60.4 per cent in November from 61.3 per cent in October. These developments had some positive impact on the stock market, analysts said.

However, shares were down in mid-market trade yesterday, due to the holiday mentality and year-end profit- taking, analysts added. “The downward trend continues and on and off selling pressures are seen and shares of Aitken Spence, Expolanka and JKH have come down in price, they said.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 23.14 points and S and P SL20 declined by 15 points. Turnover stood at Rs 1.9 billion with two crossings. Those crossings were reported in Expolanka Holdings, where 4.8 million shares crossed to the tune of Rs 960 million, its shares traded at Rs 202 and Cargills 200,000 shares crossed for Rs 47 million, its shares fetched Rs 235.

In the retail market, top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 269 million (1.4 million shares traded), JKH Rs 149 million (1.1 million shares traded), Lanka IOC Rs 98.3 million (482,000 shares traded), Softlogic Life Insurance Rs 77 million (1.2 million shares traded), Browns Investments Rs 63.9 million (9.7 million shares traded), Softlogic Capital Rs 26.9 million (4.4 million shares traded) and Agstar PLC Rs 18.2 million ( 1.2 million shares traded).During the day 39.7 million share volumes changed hands in 12000 share transactions.

It is said that mixed interest was observed in First Capital Holdings, JKH and First Capital Treasuries while retail interest was noted in Browns Investments, Jetwing Symphony and LOLC Finance.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) while the sector index lost 3.76 per cent. The share price of Expolanka Holdings decreased by Rs. 7.75 (3.77 per cent) to close at Rs. 197.75.The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC), while the sector index decreased by 0.60 per cent. The share price of Lanka IOC lost Rs. 1.25 (0.60 per cent) to close at Rs. 205.75.Yesterday, the US dollar parity rate was announced by the Central Bank as Rs 364.67.