Foreign and local interest in banking and finance shares heighten

By Hiran H.Senewiratne

The CSE gathered further momentum yesterday with local and foreign investor interest in banking and finance stocks receiving a boost amid speculation that bank interest rates would go down further, stock market analysts said.

The stock market started on a bullish note but during the middle of the session there were profit- takings and later the market turned positive. Both indices moved upwards. The All- Share Price Index went up by 33.2 points and S and P SL20 rose by 16.38 points.

Turnover stood at Rs 4.3 billion with two crossings. Those crossings were reported in JKH, which crossed 1.35 million shares to the tune of Rs 243 million; its shares traded at Rs 183.25 and Distilleries 2 million shares crossed for Rs 49 million; its shares sold at Rs 24.50.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 1 billion (5.7 million shares traded), DFCC Rs 186 million (2.2 million shares traded), NDB Rs 167 million (2.1 million shares traded), Commercial Bank Rs 164 million (1.6 million shares traded), Pan Asia Bank Rs 149 million (7.9 million shares traded), Sampath Bank Rs 135 million (1.7 million shares traded) and Expolanka Holdings Rs 124 million (820,000 shares traded). During the day 147 million share volumes changed hands in 28000 transactions.

It is said high net worth and institutional investor participation was noted in JKH, National Development Bank and DFCC. Mixed interest was observed in HNB, Expolanka Holdings and Commercial Bank while retail interest was noted in Browns Investments, Union Bank and Pan Asia Banking Corporation.

The Banking sector was the top contributor to the market turnover (due to DFCC NDB, Hatton National Bank and Pan Asia Banking Corporation) while the sector index gained 3.09 percent.

The Capital Goods sector was the second highest contributor to the market turnover (due to JKH), while the sector index increased by 1.44 percent. The share price of JKH gained Rs 5 to Rs 175.

The rupee opened steady at Rs 319.00/322.00 to the US dollar, dealers said. The rupee closed at Rs 319.50/321.00 to the US dollar on Thursday. Bond yields continued to fall, which is going to benefit the CSE, finance sources said.