CSE’s main stock index dragged down by energy and financial sectors

By Hiran H.Senewiratne

The CSE’s main stock index fell in mid-day trade yesterday dragged down by the energy and financial sectors. The main reasons for the market to fall were worries over quarterly corporate results and gloomy micro economic factors, stock market analysts said. The main index moved down 73.6 points at the end of the session and most liquid indices fell 40.9 points .The market generated a turnover of Rs. 1 billion without a crossing. The turnover is less than the average daily turnover of Rs 3.2 billion generated this year.

In the retail market, top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 143 million (873,000 shares traded), Lanka IOC Rs 137 million (704,000 shares traded), Browns Investments Rs 82.1 million (12.7 million shares traded), Richard Pieris Rs 65 million (2.2 million shares traded), Colombo Fort Land Rs 44.6 million (1.6 million shares traded), CIC Holdings Rs 36.3 million (401,000 shares traded) and CT Holdings Rs 36.5 million (151,000 shares traded). During the day 41.1 million share volumes changed hands in 14000 share transactions. Top losers were Lanka IOC, Browns Investments and Sampath Bank.

The foreigners recorded a net inflow of Rs. 193.1 million, while their participation increased to 8.4 per cent of turnover (previous day 4.9 per cent). Net foreign buying topped in JKH at Rs. 102.9 million and selling topped in LDEV at Rs. 3.5 million.

It is said buying momentum continued into yet another day, while the broad market witnessed a recovery as investor optimism grew, expecting the interest rates to come down. Active investor participation was noted on retail favourites Expolanka and LIOC, which aided in the recovery of the index during the day. Accordingly, the index displayed a sharp upswing and continued to climb higher to end the day at 8,802, while recording the highest intraday gain of 199 points in two-weeks. Yesterday the Central Bank- announced US dollar buying rate was Rs 360.63 and selling rate Rs 371.22.