Date extension in domestic debt restructuring talks continuing to prove a dampener

By Hiran H. Senewiratne

The gloom that had descended on the stock market due to the extension of the date for the conduct of talks between the government and domestic bondholders continued to prevail yesterday, market analysts said.

Initially this deal was scheduled for August 27, but due to unavoidable circumstances it was extended to September 11. The domestic debt restructuring exercise is a prime recommendation of the IMF.

However, banking sector counters were a bit active and attractive yesterday due to the Central Bank policy rate decision. Amid those developments both indices moved downwards. All -Share Price Index went down by 61.42 points and S and P SL20 declined by 16.2 points. Turnover stood at Rs 1.6 billion with four crossings. Sampath Bank 1.8 million shares crossed to the tune of Rs 126 million and its shares traded at Rs 70, TJ-Lanka 2.6 million shares crossed for Rs 90.7 million and its shares traded at Rs 34.70, Asian Hotel and Properties 1.2 million shares crossed for Rs 64.5 million; its shares traded Rs 53.50 and Hatton Plantations 750,000 shares crossed for Rs 21 million; its shares traded at Rs 28.

In the retail market top seven companies that mainly contributed to the turnover were; Samapth Bank Rs 163 million (2.3 million shares traded), JKH Rs 84.9 million (475,000 shares traded), CIC Holdings Rs 70.5 million (1 million shares traded), Hayley Rs 59.6 million (662,000 shares traded), Asian Hotel

Properties Rs 55.8 million (1 million shares traded), TJ Lanka Rs 44.7 million (1.3 million shares traded) and Kingsbury Rs 40.6 million (3.6 million shares traded). During the day 63.5 million share volumes changed hands in 15000 transactions.

A bond maturing on 01.07.2025 was quoted at 15.50/16.55 percent on Thursday after closing at 15.50/16.55 percent on Tuesday. A bond maturing on 15.05.2026 was quoted up at 15.90/16.00 percent after closing at 15.80/16.00 percent on Tuesday. A bond maturing on 15.09.2027 was quoted at 14.75/15.00 percent after closing at 14.70/15.50 percent.