Dilemmas for investors despite IMF assurances on debt restructuring

By Hiran H.Senewiratne

The CSE began trading on a negative note yesterday despite IMF assurances that it would not interfere with internal debt restructuring affairs but urged the government, instead, to work on a strategic plan for structural reforms. This has created some dilemmas for investors, market analysts observed.

The share market edged down in mid-day trade on the basis of a- wait- and- see approach by investors, amid the above developments, market analysts said.

Consequently, both indices moved downwards with unsatisfactory investor participation. The All- Share Price Index went down by 77.81 points and the S and P SL20 declined by 23.77 points.

Turnover stood at Rs 945 million with two crossings. Those crossings were reported in HNB, which crossed 1.15 million shares to the tune of Rs 136 million; its shares traded at Rs 118 and JKH 664,000 shares crossed to the tune of Rs 92.8 million, its shares traded at Rs 139.50.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs126.8 million (908,000 shares traded), Commercial Bank Rs 80.4 million (1.38 million shares traded), Lanka IOC Rs 48.9 million (352,000 shares traded), Expolanka Holdings Rs 45.1 million (308,000 shares traded), Browns Investments Rs 23.8 million (4.5 million shares traded), HNB Rs 23.5 million (194,000 shares traded) and Melstacorp Rs 32.3 million (412,000 shares traded), During the day 32.6 million share volumes changed hands in 11000 transactions.

The market broke the psychological level of 8,900 in share volumes as investors await more information from the government as the IMF has said they are not involved in domestic debt restructuring, analysts said.

Yesterday, the Central Bank announced that the rupee appreciated further against the US dollar. Accordingly, the buying rate was Rs. 305.43 and the selling rate Rs 318.79.