Issues relating to IMF bailout dampen CSE investor sentiment

By Hiran H.Senewiratne

A gloomy investor sentiment was noted yesterday at the CSE due to the perceived unsustainability of the credit assurance on the IMF loan, stock market analysts said.

In a statement issued on Sunday, eminent economists and scholars the world over observed that amid Sri Lanka’s crucial debt negotiations, “All lenders, bilateral, multilateral, and private — must share the burden of restructuring, with assurance of additional financing in the near term.”

However, Sri Lanka cannot ensure this on its own, they noted. “It requires much greater international support. Instead of geopolitical manoeuvring, all of Sri Lanka’s creditors must ensure a debt cancellation that is sufficient to provide a way out of the current crisis, the statement said.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 43.51 points and S and P SL20 declined by 35 points. Turnover stood at Rs 2.38 billion with two crossings. Those crossings were reported in Agstar PLC, which crossed 3.9 million shares to the tune of Rs 63 million and its shares traded at Rs 16.20 and hSenid Business Solutions 1.5 million shares crossed to the tune of Rs 25.5 million; its shares traded at Rs 17.

In the retail market top seven companies that mainly contributed to the turnover were, Softlogic Capital PLC Rs 883 million (53.2 million shares traded), Softlogic Life Insurance Rs 397 million (3.7 million shares traded), Lanka IOC Rs 114 million (588,000 shares traded), Ambeon Capital PLC Rs 108 million (8.6 million shares traded), Expolanka Holdings Rs 82 million (483,000 shares traded), Agstar Plc 63.9 million (3.8 million shares traded) and Browns Investments Rs 59.8 million (8.9 million shares traded). During the day 127 million share volumes changed hands in 23000 transactions.

Softlogic Capital and Softlogic Life Insurance contributed more than one 52 per cent or Rs 1.25 billion to the turnover. Softlogic Capital’s share price appreciated by Rs 2.30 or Rs 16 per cent. Its share price shot up to Rs 160.60 from Rs 14.30 and Softlogic Life Insurance share price appreciated by 13 per cent or Rs 12.80. Its share price shot up to Rs 111.50 from Rs 98.70.