Indices decline as share market turns negative during latter half of trading

By Hiran H.Senewiratne

Trading activities at the CSE were positive initially yesterday and there was increased buying interest in shares owing to improved investor sentiment subsequent to a Central Bank projection of a five percent growth of the economy this year, stock market analysts said.

However, towards the latter part of the day profit takings were noted and the stock market turned negative, analysts said.

Amid those developments both indices moved downwards. The All Share Price Index went down by 83.17 points and S and P SL20 declined by 25.59 points. Turnover stood at Rs. 3.95 billion with a single crossing. This crossing was reported in Sampath Bank, which crossed 3.5 million shares to the tune of Rs. 173.2 million; its shares traded at Rs. 49.50.

In the retail market five companies that mainly contributed to the turnover were; Expolanka Rs. 1.3 billion (7.8 million shares traded), Browns Investments Rs. 1.1 billion (111 million shares traded), LOLC Finance Rs. 188 million (21.5 million shares traded), Tokyo Cement (Non Voting) Rs. 167 million (3.7 million shares traded) and LOLC Holdings Rs. 106.2 million (200,000 shares traded). During the day 215 million shares changed hands in 29000 transactions.

Further, Nestle’s parent company, Nestle SA, purchased 100,000 shares in Nestle Lanka Plc. The company purchased 49.4 million shares and with the purchase, total shareholding of Nestle SA would be 91.95 percent.

On Monday, market capitalisation had fallen to Rs. 3.80 trillion (after the indices plunged by nearly 4%) from Rs. 3.95 billion but by the previous day it had recovered to Rs. 3.97 trillion – though still marginally below the Rs. 4 trillion threshold last enjoyed on September 9.

It is said high net worth and institutional investor participation was noted in LOLC Finance. Mixed interest was observed in Expolanka Holdings, Hayleys and LOLC Holdings, while retail interest was noted in Browns Investments, SMB Leasing voting and SMB Leasing non-voting. Foreign participation in market activity remained at subdued levels with foreigners closing as net sellers.

Meanwhile, the Sri Lanka rupee exchange rate was quoted at USD 199.64.