Decline in CSE retail market activity comes in the wake of negative investor sentiment

By Hiran H. Senewiratne

The delay in Sri Lanka obtaining the second tranche of the IMF loan continued to affect investor sentiment yesterday, market analysts said.

Both CSE indices moved downwards. Out of the Rs 900 million turnover, Rs 300 million was reported from crossings and only Rs 600 million came from retail market activities, which is below this year’s average turnover level Rs 1.5 billion, analysts said.

The All Share Price Index went down by 38.5 points, while the S and P SL20 declined by 1 point. Turnover stood at Rs 913 million with five crossings. Those crossings were reported in Colombo Fort Lands, which crossed 4.1 million share volumes to the tune of Rs 112 million; its shares traded at Rs 27, Lanka IOC 750,000 shares crossed for Rs 75 million; its shares traded at Rs 100, TJ Lanka 1.1 million shares crossed for Rs 38 million and its shares traded at Rs 35, Cargills 100,000 shares crossed to the tune of Rs 37 million; its shares sold at Rs 370 and Sampath Bank 512,000 shares crossed for Rs 34 million; its shares traded at Rs 66.50.

In the retail market top seven companies that mainly contributed to the turnover were; TJ Lanka Rs 58 million (1.7 million shares traded), Sampath Bank Rs 41.8 million (627,000 shares traded), Hayleys Rs 39 million (518,000 shares traded), Lanka IOC Rs 37.4 million (367,000 shares traded), JKH Rs 31.6 million (166,000 shares traded), Aitken Spence Hotels Rs 21.7 million (336,000 shares traded) and Commercial Bank Rs 21.2 million (252,000 shares traded). During the day 28.6 million share volumes changed hands in 8482 transactions.

Yesterday, the rupee opened stable at Rs 328.00/20 to the US dollar, dealers said. Bonds yields were slightly down. A bond maturing on 01.08.2026 was quoted at 14.50/60 percent from 14.60/75 percent. A bond maturing on 01.07.2028 was quoted at 14.65/75 percent from 14.70/85 percent.