Investor sentiment improves in the wake of CBSL statement

By Hiran H.Senewiratne 

CSE investor sentiment had improved yesterday  following the Central Bank Governor’s 2021  economic policy proposal for  Sri Lanka. It states, among other things, that    establishing a ‘permanent single digit interest rate structure’,controlling inflation and increasing foreign reserves in the country are priorities, market analysts said. 

Central Bank Governor Prof. W.D. Lakshman delivering a 2021 policy roadmap through a virtual address said that the new economic initiative would improve economic growth. This gave some impetus to stock market players, stock market analysts said. Both indices moved upwards. The All Share Price Index went up by 120.76 points up and  S and P SL20 rose by 54.38 points.  

With these positive sentiments the stock market was overly positive and investor participation had also remarkably improved with the turnover touching Rs. 4.97 billion yesterday with a single crossing. The crossing was reported in JKH,  which crossed  385,000 shares for Rs. 57.8 million; its shares trading at Rs. 150.

In the retail market, top five companies that mainly contributed to the turnover were; Browns Investments Rs. 1.23 billion (266 million shares traded), Expolanka Rs. 572 million (19 million shares traded), ACL Cables Rs. 334 million (4.1 million shares traded), Tokyo Cement (Voting) Rs. 184 million (2.3 million shares traded) and Tokyo Cement (Non Voting) Rs. 183 million (2.58 million shares traded). During the day  300 million share volumes changed hands in 39552 transactions.      

Sri Lanka rupee was quoted weaker around 189.50/190.50 to the US dollar in the one month market on Monday, while bond yields were unchanged, dealers said. One months were quoted at similar levels on Friday.