Increased buying interest in banking sector stocks as CSE reflects mixed reactions

By Hiran H. Senewiratne

The CSE indicated mixed reactions yesterday and banking sector stocks increased their buying interest amid an expectation that lending rates would come down. However, bank interest rates have already come down, market analysts said.

The main All- Share Price Index was down 21.69 points, while the most liquid index S&P SL20 was up by 6.73 points. Turnover stood at Rs 923 .3 million with two crossings. Those crossings were reported in Agstar, which crossed 2.8 million shares to the tune of Rs 29.20 million, its shares traded at Rs 29.50 and Dialog 2.3 million shares crossed for Rs 23 million; its shares traded at Rs 10.

In the retail market top seven companies that mainly contributed to the turnover were, Dialog Rs 153 milli0n (15.3 million shares traded), SLT Rs 58.5 million (618,000 shares traded), Agstar Rs 54.8 million (5.3 million shares traded), Lanka IOC Rs 52 4 million (418,000 shares traded), Hayleys Rs 46 million (639,000 shares traded), Expolanka Rs 34.5 million (261,000 shares traded) and LOLC Rs 32 million(5.6 million shares traded). During the day 56.1 million shares volumes changed hands in 10115 transactions.

It is said high net worth and institutional investor participation was noted in Hayleys. Mixed interest was observed in C.W. Mackie, CIC Holdings and Piramal Glass, while retail interest was noted in LOLC Finance, Browns Investments and Vallibel Power Erathna.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys), while the sector index lost 0.30 percent. The share price of Hayleys closed flat at Rs. 72.

The Materials sector was the second highest contributor to the market turnover (due to CIC Holdings and Piramal Glass), while the sector index increased by 0.53%. The share price of CIC Holdings moved up by Rs 1 to Rs. 62.60. The share price of Piramal Glass recorded a gain of 80 cents to reach Rs. 22.80.

Yesterday, the Central Bank’s US dollar buying rate was Rs 297.28 and the selling rate Rs 314.30.