First Capital Treasuries’ dividend payment sparks heavy buying interest in primary dealer counters

By Hiran H.Senewiratne

CSE’s primary dealer counters yesterday dominated the stock market following an unexpected and sudden dividend payment announcement by First Capital Treasuries, which resulted in heavy buying interest for other primary dealer entities, stock market analysts said.

First Capital Treasuries announced a dividend of Rs 10 per share. This resulted in heavy buying interest for other primary dealer companies, such as First Capital Holdings and Capital Alliance. These three companies became the top three retail contributors to the turnover, market analysts said.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 128.7 points and S and P SL20 declined by 35.68 points. Turnover stood at Rs 1.2 billion without any crossings.

In the retail market top seven companies that mainly contributed to the turnover were; First Capital Treasuries Rs 385 million (9.5 million shares traded), First Capital Holdings Rs 138 million (2.7 million shares traded), Capital Alliance Rs 73.3 million (1.1 million shares traded), JKH Rs 70.4 million (373,000 shares traded), Expolanka Holdings Rs 58.6 million (469,000 shares traded), Hayleys Fabrics Rs 50.4 million (1.1 million shares traded) and Lanka IOC Rs 32 million (308,000 shares traded). During the day 233 million share volumes changed hands in 16000 transactions.

Yesterday, the rupee opened slightly weaker at Rs 323.60/90, while bond yields were largely unchanged, dealers said. The rupee closed at Rs 323.40/60 percent on the previous day.

A bond maturing on 01.07.2025 opened at 1500/15 flat from Tuesday’s close of 15.00/10 percent. A bond maturing on 01.06.2026 opened at 15.20/25 flat from 15.20/30 percent. A bond maturing on 01.07.2028 opened at 14.40/60, slightly higher from 14.35/60 percent.