CSE’s initial bullish spurt fizzles out in the wake of profit-takings in blue-chips

By Hiran H.Senewiratne

The CSE kicked off on a bullish note but subsequently witnessed some mixed reactions yesterday as profit- takings were noted in index- weighted blue- chip companies, stock market analysts said.The All- Share Price Index went up by 61 points and S and P SL20 declined by 8.57 points. Turnover stood at Rs 2.65 billion with eight crossings.

Those crossings were reported in CTC, which crossed 100,000 shares to the tune of Rs 95 million; its shares traded at Rs 950, Melstacope 1.09 million shares crossed for Rs 87.7 million; its shares traded at Rs 82.50, Vallible One 2 million shares crossed for Rs 78 million, its shares sold at Rs 70, Sampath Bank 1 million shares crossed to the tune of Rs 70 million and its shares fetched Rs 70, HNB 336,000 shares crossed to the tune of Rs 59.7 million and its shares traded at Rs 183, Sunshine Holdings 1.06 million shares crossed for Rs 57.4 million and its shares traded at Rs 54, DFCC Bank 500,000 shares crossed to the tune of Rs 45 million, its shares fetched Rs 90 and JKH 185,000 shares crossed to the tune of Rs 35.7 million, its shares fetched Rs 193.

In the retail market top five companies that contributed to the turnover were Pan Asia Bank Rs 332 million (15.5 million shares traded), JKH Rs 314 million (1.6 million shares traded), DFCC Bank Rs 314 million (3.4 million shares traded) and Central Finance Rs 286 million (2.3 million shares traded) and Capital Alliance Rs 280 million (four million shares traded). During the day 134 million share volumes changed hands in 32383 transactions.

It is said high net worth and institutional investor participation was noted in JKH, Melstacorp and Expolanka Holdings. Mixed interest was observed in Capital Alliance, Teejay Lanka and Commercial Bank, while retail interest was noted in Softlogic Capital, SMB Leasing nonvoting and Browns Investments.

The Banking sector was the top contributor to the market turnover (due to Pan Asian Bank), while the sector index gained 2.31 percent. The share price of Hatton National Bank appreciated by 1 rupee to reach Rs. 183.25.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance) while the sector index increased by 3.78 percent. The share price of Capital Alliance recorded a gain of Rs. 5 to reach Rs. 65.40.

Yesterday, the rupee opened at Rs 320.50/321.50 to the US dollar, after closing on the previous day at 321.50/321.70 to the US dollar, dealers said.

Bond yields were down. A bond maturing on 15.09.2027 was quoted stable at 12.95/05 on Thursday, up from Wednesday’s at 12.95/10 percent.A bond maturing on 01.05.2028 was quoted at down 12.85/95 on Thursday, up from Wednesday’s 13.00/20 percent.