Decline in three-month TB rate and State Minister’s comments bring CSE to life

By Hiran H.Senewiratne

The stock market got off to a negative start yesterday but later recovered during the last hour due to a decline in Treasury Bills at the auction and the State Minister of Finance’s revelation of some positive trends in the external debt restructuring exercise, market analysts said.

At the Treasury Bill auction, a sharp decline of nine percent was noted especially in the three-month Treasury Bill rate. Further, rays of hopes were created when State Minister for Finance Shehan Semasinghe said, without giving a date, that Sri Lanka is expecting a second round of talks with private investors ‘very soon’ to restructure sovereign bonds.

Sri Lanka is planning to complete debt restructuring by June 2024 and to go to the IMF board for the next round.

Both indices showed mixed reactions. The All Share Price Index went down by 18.17 points while S and P SL20 rose by7.77 points. Turnover stood at Rs 1.3 billion with three crossings. Those crossings were reported in JKH, which crossed 900,000 shares to the tune of Rs 186 million; its shares traded at Rs 207, Lanka IOC 837,000 shares crossed for Rs 108 million; its shares traded at Rs 130 and Hemas Holdings 250,000 shares crossed for Rs 22 million; its shares traded at Rs 88.

In the retail market top six companies that mainly contributed to the turnover were; Browns Rs 93 million (15 million shares traded), JKH Rs 85 million (410,000 shares traded), Sampath Bank Rs 62.8 million (681,000 shares traded), Lanka IOC Rs 60 million 50 million (382,000 shares traded), LOLC Finance Rs 48 million (7.7 million shares traded) and ACL Cables Rs 40.8 million (480,000 shares traded).During the day 54.57 million share volumes changed hands in 10826 transactions.

The rupee opened broadly stable at Rs 299.65/85 to the US dollar on Friday, from Rs 299.60/75 the previous day, dealers said. Bond yields were up. A bond maturing on 15.12.2026 was quoted down at 10.10/25 percent from 10.15/35 percent. A bond maturing on 15.09.2027 was quoted down at 10.35/50 percent from 10.45/55 percent. A bond maturing on 01.07.2028 was quoted down at 10.70/80 percent from 10.80/90 percent. A bond maturing on 15.03.2028 was quoted at 10.65/70 percent.