Economic uncertainty dampens CSE

By Hiran H.Senewiratne 

CSE activities were negative yesterday and  witnessed some selling pressure on most stocks due to the country’s economic uncertainty. The latter was due to a probable global oil price hike and the much awaited US $ one billion Indian loan now being in limbo owing to the eastern terminal issue. This has  created some currency pressure on the economy, stock market analysts said.

It is said that the government has suspended the surcharge on import of fuel as relief to loss-incurring Ceylon Petroleum Corporation (CPC) and the listed Lanka IOC, though there won’t be a change in prices at retail level.  Surcharges applicable were Rs. 20 per litre of petrol 95, Rs.12 per litre of auto diesel and Rs. 30 per litre of super diesel

Further, payment of an Indian loan that amounts to  US $ 400 recently, negatively impacted foreign currency reserves, which have been reduced to US$ 5.4 billion or more in January this year. The delay in obtaining a Chinese pledged loan of US 1.5 billion was also adding insult to injury, stock market analysts said.

Amid these developments both indices witnessed some downward trends. The All Share Price Index was down by 153.55 points and S and P SL20 went down by 54.51 points. Turnover stood at Rs4.95 billion without a single crossing.

In the retail market, top five contributors to the turnover were; Hemas Holdings Rs. 654 million (7.25 million shares traded), Haycarb Rs. 608 million (397,000 shares traded), LOLC Rs. 484 million (1.17 million shares traded), Expolanka Rs. 379 million (7.4 million shares traded), and Dipped Products Rs. 350 million (491,000 shares traded).During the day 128.8 million share volumes changed hands in 32706 transactions. 

The Sri Lanka rupee quoted slightly firmer around 193.50/195.50 levels in the spot market on Tuesday, while bond yields remained unchanged in dull market trade, dealers said. The rupee closed wide 194.00/195.50 to the US dollar on Monday.