CSE’s early momentum fizzles out over IMF-linked worries

By Hiran H.Senewiratne

The CSE at the beginning witnessed some positive momentum yesterday due to inflation coming down to 4.6 percent and investors expecting the Central Bank to reduce policy rates further. But towards the latter part of the day, the market turned negative, over worries that there would be delays in implementing IMF recommendations and other issues, market analysts said.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 59.47 points and S and P SL20 declined by 28.92 points. Turnover stood at Rs 2.9 billion with two crossings. Those crossings were reported in HNB, which crossed 625,000 shares to the tune of Rs 110 million; its shares traded at Rs 176 and Melstacope Rs 9.80 worth shares crossed for 252,000 to the tune of Rs 20.1 million.

In the capital market top seven companies that mainly contributed to the turnover were, Capital Alliance Rs 326 million (3.6 million shares traded), JKH Rs 266 million (1.4 million shares traded), HNB Rs 263 million (1.4 million shares traded), Hayleys Fabrics Rs 216 million (4.7 million shares traded), Pan Asian Bank Rs 139 million (6.2 million shares traded), First Capital Holdings Rs 117 million (1.9 million shares traded) and Distilleries Rs 81.8 million (3.44 million shares traded).

It is said high net worth and institutional investor participation was noted in Windforce, Lankem Developments, and Melstacorp. Mixed interest was observed in Capital Alliance, Hayleys Fabric and First Capital, while retail interest was noted in Hela Apparel Holdings, Amana Bank and SMB Leasing nonvoting.

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance and First Capital Holdings) while the sector index lost 0.30 percent. The share price of Capital Alliance gained Rs. 11.90 to reach Rs. 89.40. The share price of First Capital Holdings recorded a gain of Rs. 4.20 to reach Rs. 59.

The Utilities sector was the second highest contributor to the market turnover (due to Windforce), while the sector index increased by 0.93 percent. The share price of Windforce increased by 20 cents to reach Rs. 19.10.

Yesterday the rupee opened at Rs 323.75/324.00 to the US dollar, after closing on Monday at Rs 323.50/324.50 to the US dollar, dealers said.

A bond maturing on 01.07.2025 was quoted up at 13.50/60 percent on Tuesday after closing at 13.15/45 percent on Monday. A bond maturing on 15.05.2026 was quoted at stable at 12.90/13.10 percent after closing at 12.90/13.00 percent on Monday.

A bond maturing on 15.09.2027 was quoted stable at 12.95/13.05 percent after closing at 12.95/13.10 percent.