Investor sentiment in CSE slows over possible rate cuts

By Hiiran H.Senewiratne

The CSE edged- up in mid-day trade yesterday on rather slow sentiments as investors adopted a- wait- and- see approach on possible rate cuts at the CBSL’s forthcoming monthly Monetary Policy Review, analysts said.

“Investors are also waiting for clarity on the IMF loan facility and the market is going through cyclical behaviour after performing well in the recent past, an analyst added.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 10.15 points and S and P SL20 declined by 5.1 points. Turnover stood at Rs 1.4 billion with three crossings. Those crossings were reported in Lanka IOC, which crossed 703,000 shares to the tune of Rs 140 million; its shares traded at Rs 200, JKH 370,000 shares crossed for Rs 50 million and its shares traded at Rs 135 and Aitken Spence 289,000 shares crossed for Rs 40.3 million; its shares fetched Rs 139.

In the retail market top seven companies that mainly contribute to the turnover were; HNB Rs 203 million (1.9 million shares traded), JKH Rs 97.5 million (543,000 shares traded), Expolanka Holdings Rs 97.5 million (543,000 shares traded), Sampath Bank Rs 71.6 million (1.4 million shares traded), Softlogic Capital PLC Rs 53.51 million (4.9 million shares traded), Lanka IOC Rs 52.5 million (266,000 shares traded), Union Bank Rs 49.1 million (5.2 million shares traded). During the day 50.4 million share volumes changed hands in 12000 share transactions.

Bond yields were steady at open on Tuesday following a Treasury bond auction, while the interbank guidance peg of the Central Bank appreciated.

A bond maturing on 01.02.2025 was quoted at 32.00/20 per cent on Tuesday, up from 31.70/32.10 per cent on Monday. A bond maturing on 15.05.2026 was quoted at 29.25/50 per cent, unchanged from yesterday’s close. A bond maturing on 15.09.2027 was quoted at 29.00/30, down from yesterday’s close at 29.20/30 per cent.

Yesterday, the Central Bank’s US dollar buying rate was Rs 357.68 and the selling rate Rs 366.92.