Default rating assigned to bonds in domestic restructuring plunges CSE into negative territory

By Hiran H.Senewiratne

The stock market kicked off on a positive note last morning but subsequently investor sentiment dipped into negative territory with Fitch Ratings downgrading several bonds involved in domestic debt restructuring to default status. Besides, the long-term local currency rating was downgraded to ‘Restricted Default’.

“The ratings on local-currency bonds tendered in the domestic debt exchange have been downgraded to ‘D’ from ‘C’, while four local-currency bonds not tendered in the domestic debt exchange have been affirmed at ‘C’, the rating agency said.

The All- Share Price Index went down by 66.6 points and S and P SL20 declined by 16.17 points. Turnover stood at Rs 784 million with two crossings.

Those crossings were reported in Hayleys Fabrics, which crossed 460,000 shares to the tune of Rs 21.85 million and its shares traded at Rs 47.50 and Access Engineering 1 million shares crossed for Rs 20 million; its shares sold at Rs 20.

In the retail market top seven companies that mainly contributed to the turnover were, Hayleys Fabrics Rss 50.2 million (1.1 million shares traded), Expolanka Holdings Rs 44 million (310,000 shares traded), Access Engineering Rs 40.9 million (2 million shares traded), Hayleys Rs 25.4 million (261,000 shares traded), JKH Rs 25 million (131,000 shares traded), Capital Alliance Rs 24.9 million (308,000 shares traded) and CIC Holdings Rs 23.6 million (413,000 shares traded). During the day 36.8 million share volumes changed hands in 9800 transactions.

Yesterday the rupee opened at Rs 323.00/50 to the US dollar from the previous day’s close at Rs. 323.25/75 to the US dollar, dealers said.

A bond maturing on 01.08.2026 was quoted down at 14.05/15 percent from 14.25/40 percent. A bond maturing on 15.09.2027 was quoted down at 13.70/14.00 percent from 14.00/45 percent a day earlier. A bond maturing on 01.05.2028 was quoted down at 13.40/70 from 14.25/40 percent the day earlier.