CSE trading punctuated by foreign purchases; turnover hits Rs. 7 billion

By Hiran H.Senewiratne

CSE activities were extremely bullish yesterday due to heavy institutional and retail participation. Treasury bill rates are becoming relatively low and investors are turning to equity markets owing to heavy returns, market analysts observed. Moreover, the day’s trading was punctuated by marked foreign purchasing, they added.

Although the market kicked off on a bullish and positive note, towards the latter part of the session it displayed negative behaviour due to concerns among investors over quarterly earnings of companies not going to be attractive. However, turnover surpassed the Rs 7 billion mark characterized by heavy investor participation, analysts said.

Amid those developments the market achieved a sharp rebound yesterday with foreign investors stepping up buying, boosting the year to date net inflow to Rs. 3 billion. Further, Agalawatta Plantation’s crossing of 114 million shares to the tune of Rs 4.5 billion also boosted the market, analysts explained.

The All- Share Price Index went up by 41.2 points and S and P SL20 rose by 6.22 points. Turnover stood at Rs 7.7 billion with four crossings. It is said that 73 percent of Agalawatta Plantation’s 114 million shares are owned owned by DR Investments.

HNB crossed 605,000 shares to the tune of Rs 115.5 million; its shares traded at Rs 190.50, CIC 500,000 shares crossed for Rs 36 million, its shares traded at Rs 72 and JKH 150,000 shares crossed to the tune of Rs 25.2 million and its share price traded at Rs 168.

In the retail market top companies that mainly contributed to the turnover were Expolanka Holdings Rs 222 million (1.5 million shares traded), HNB Rs 219 million (1.15 million shares traded), Browns Investments Rs 175 million (25.7 million shares traded), Hayleys Fabrics Rs 164 million (5.3 million shares traded), Capital Alliance Rs 123 million (2.2 million shares traded) and DFCC Bank Rs 99.1million (1.2 million shares traded). During the day 220 million share volumes changed hands in 26000 transactions.

It is said that high net worth and institutional investor participation was noted in NTB, JKH, and HNB. Mixed interest was observed in Sampath Bank, LOLC Holdings and National Development Bank, while retail interest was noted in Browns Investments, Dialog Axiata and Shaw Wallace Investments.

The Banking sector was the top contributor to the market turnover (due to NTB, Sampath Bank and HNB) while the sector index gained 4.73 percent. The share price of NTB gained Rs 4.20 (4.45 percent) to reach Rs 98.60. The share price of Sampath Bank moved up by Rs 3.50 to hit Rs 77, while the share price of HNB appreciated by Rs 10.25 to close at Rs 186.25.

The Capital Goods sector was the second highest contributor to the market turnover (due to JKH) while the sector index increased by 3.40 percent. The share price of JKH increased by Rs 8.25 (5.20 percent) to reach Rs 167.00. LOLC Holdings was also included among the top turnover contributors. The share price of LOLC Holdings recorded a gain of Rs 9 to close at Rs 493.25

The Sri Lanka rupee opened at Rs 329.25/333.00 in the spot market, dealers said, while bond yields opened marginally lower. The rupee closed at 329.40/50 to the US dollar in the spot market on the previous day.