IMF chief’s positive comments on bailout boost CSE

By Hiran H. Senewiratne

CSE trading was extremely bullish yesterday in the early part of the session after IMF Managing Director Kristalina Georgieva remarked positively on the progress made by the Sri Lankan authorities in taking decisive policy actions to obtain financial assurances from all their major creditors, including China, India and the Paris Club.

During the latter part of the day, profit- takings were witnessed but the stock market ended on a positive note though with mixed reactions, market analysts said. The main All -Share Price Index (ASPI) rose by 4.92 points, while the S&P SL20 was down by 5.53 points.

Turnover is pretty strong and investors are waiting for firmer responses and are jumping in to invest while the sentiments last. The turnover stood at Rs 3.27 billion with five crossings. Those crossings were reported in Hayleys, where 4 million shares crossed to the tune of Rs 309 million, its shares traded at Rs 77, HNB 1.9 million shares crossed for Rs 253 million and its shares traded at Rs 135, Expolanka Holdings 200,000 shares crossed to the tune of Rs 30 million, its shares traded at Rs 150, LB Finance 400,000 shares crossed for Rs 22.4 million, its shares fetched Rs 56 and Hayleys Fabrics 825,000 shares crossed to the tune of Rs 20.6 million , its shares traded at Rs 25.

In the retail market top seven companies that mainly contributed to the turnover were, HNB Rs 287 million (2.1 million shares traded), JKH Rs 170 million (1.2 million shares traded), Capital Alliance Rs 135 million (3.8 million shares traded), Expolanka Holdings Rs 134 million (895,000 shares traded), Hayleys Rs 114 million (1.46 million shares traded), Sampath Bank Rs 95.2 million (1.65 million shares traded) and ACL Cables Rs 94.2 million (1.1 million shares traded). During the day 108 million share volumes changed hands in 27000 transactions.

During the day there had been significant interest in the banking and financial sector.

HNB had been doing significantly well due to the index being heavily undervalued as other banks and financial institutions have been rerated upwards, piling-up investors for HNB, an analyst said.

In the bond market bond yields were down in the mid-day trade on Wednesday as results of a bill auction awaited, dealers said.

A bond maturing on 01.07.2025 was quoted at 30.75/90 per cent on Tuesday, down from 31.40/70 percent on Friday. A bond maturing on 15.05.2026 was quoted at 27.20/28.20 per cent, down from Friday’s close at 28.10/30 per cent. A bond maturing on 15.09.2027 was quoted at 26.95/27.10, down from 28.00/30 per cent.

Yesterday the Central Bank’s US dollar buying rate was Rs 313.77 and the selling rate Rs 331.05. Further, it is quite visible that the rupee is appreciating against the US dollar.