Extension of bond exchange date casts gloom on share market

By Hiran H.Senewiratne

A degree of gloom enveloped the share market yesterday because stock market investors were anticipating an upward interest rate trend in the primary market. Besides, on the domestic debt restructuring front, the government had extended the bond exchange date beyond the scheduled date, market analysts said.

Under the IMF recommendations on the domestic debt restructuring exercise, the deadline for the bond exchange between the government and bondholder was August 28, but due to unavoidable circumstances it had been extended to September 11. This had negatively impacted yesterday’s stock market, analysts said.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 37.38 points and S and P SL20 declined by 15. 9 points. Turnover stood at Rs 2.2 billion with six crossings. Those crossings were reported in JKH, which crossed 1.5 million shares to the tune of Rs 271 million; its shares traded at Rs 181, Asia Hotel Properties 4.2 million shares crossed for Rs 226 million and its shares traded at Rs 3.50, Citizens Development Business and Finance 129 million shares crossed for Rs 119 million; its shares traded at Rs 191, Lanka IOC 300,000 shares crossed for Rs 34.2 million; its shares fetched Rs 114, Melstacope 252,000 shares crossed to the tune of Rs 20.1 million; its shares sold at Rs 80 and DFCC 225,000 shares crossed for Rs 20 million; its shares fetched Rs 89.

In the retail market top five companies that mainly contributed to the turnover were; HNB Rs 155 million (886,000 shares traded), Asia Hotel and Properties Rs 99.8 million (1.8 million shares traded), Capital Alliance Rs 98.7 million (1.2 million shares traded), JKH Rs 96.3 million (530,000 shares traded) and Ceylon Grain Elevators Rs 86.7 million (515,000 shares traded). During the day 60.1 million share volumes changed hands in 17000 transactions.

Yesterday, the rupee opened at Rs 323.75/324.25 to the US dollar, after closing on Friday at Rs 324.00/25 to the US dollar, dealers said.

A bond maturing on 15.09.2027 was quoted at 14.45/55 percent after closing at 14.35/50 percent on Friday. A bond maturing on 01.05.2028 was quoted unchanged at 13.90/14.10.