‘Fruitful Govt.-IMF negotiations’ impact bourse positively

By Hiran H.Senewiratne

The CSE witnessed a degree of recovery yesterday following S and P Global upgrading the local currency rating to CCC plus from Default level, combined with fruitful negotiations by the government with the IMF, stock market analysts said.

Due to the above reasons the market was able to create a positive picture of itself. Both indices moved upwards. The All- Share Price Index went up by 31.66 points and S and P SL20 rose by 13.43 points. Turnover stood at Rs 942 million with one crossing. The crossing was reported in JKH, which crossed 678,000 shares to the tune of Rs 130 million; its shares traded at Rs 193.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 167 million (874,000 shares traded), DFCC Bank Rs 125 million (1.4 million shares traded), Pan Asia Bank Rs 36.3 million (1.8 million shares traded), Capital Alliance Rs 29.9 million (390,000 shares traded), Chevron Lubricants Rs 29.5 million (326,000 shares traded), Lanka IOC Rs 24.9 million (216,000 shares traded) and Expolanka Holdings Rs 22.1 million (177,000 shares traded). During the day 29.2 million share volumes changed hands in 9000 transactions.

It is said that high net worth and institutional investor participation was noted in JKH, National Development Bank and Union Bank. Mixed interest was observed in Softlogic Capital, Browns Investments and Lanka IOC, while retail interest was noted in Industrial Asphalts, LOLC Finance and UB Finance Company.

Foreign participation in the market remained at subdued levels with foreigners closing as net buyers.

The Capital Goods sector was the top contributor to the market turnover (due to JKH) while the sector index gained 0.23 percent. The share price of JKH increased by Rs. 1 (0.53%) to close at Rs. 191.

Insurance sector was the second highest contributor to the market turnover (due to Union Assurance) while the sector index decreased by 0.27%. The share price of Union Assurance closed flat at Rs. 39.80.

Yesterday, the rupee opened at Rs 324.65/85 to the US dollar, dealers said. A bond maturing on 01.08.2026 was quoted stable at 15.50/65. A bond maturing on 01.05.2028 was quoted at 14.30/60 percent.