Low bank interest rates encouraging people to invest in bourse – top CSE official

By Hiran H.Senewiratne 

Low bank interest rates  are encouraging people to invest in the CSE. This has resulted in a boom in the market, a top CSE official said.

“Today, the total bank deposit amounts to Rs. 10 trillion and most people are looking at investing their funds in high yielding avenues because bank interest rates are around four to five percent. Therefore, investing in the CSE has become the best option, CSE – Head-Market Development Niroshan Wijesundara told The Island Financial Review.

He said people have changed their investment options to the CSE. Owing to that when compared to 2019 in 2020 investor participation has increased  by 51 percent. Further, most stocks are undervalued and the people are taking that advantage as well, Wijesundara said.

According to Wijesundera market capitalisation at the CSE  from 1st to  21 January touched Rs. 3699.7 billion. ‘It is a clear indication that there is a big boom in the market, he said.

Amid those developments, the All Share Price Index increased by 230.92 points to 8694.35 yesterday while  S and P SL20 increased by 207.12 or 625 percent to 3519.47. The turnover stood at Rs. 14.99 billion with ten crossings. Those crossings were reported in TJ Lanka, where 4.8 million shares crossed for Rs. 214 million, its shares traded at Rs. 45, HNB (Non Voting)  1.4 million shares crossed for Rs. 172 million and its shares traded at Rs. 125, Commercial Bank 1.1 million shares crossed for Rs. 109 million, its shares traded at Rs. 103, JKH 615,000 shares crossed for Rs. 105.2 million and HNB (Voting) 406 million shares crossed for Rs. 58.9 million and its shares traded at Rs. 145.

Meanwhile, Ceylon Cold Stores 43,400 shares crossed for Rs. 31.5 million, its shares traded at Rs. 725, Lion Brewery 45000 shares crossed for Rs. 26.6 million, its shares trading at Rs. 590, Sampath Bank161,000 shares crossed for Rs. 26.5 million, its shares traded at Rs. 165, Hayleys 26000 shares crossed for Rs. 20.8 million, its shares trading at Rs. 800 and Expolanka 350,000 shares crossed for Rs. 20.5 million, its shares fetching Rs. 58.50.

In the retail market top five contributors to the turnover were;  Expolanka Rs. 1.8 billion (29.9 million shares traded). LOLC Rs. 1.64 billion (4.3 million shares traded), JKH Rs. 1.13 billion (6.3 million shares traded), Dipped Products Rs. 887 million (1.4 million shares traded) and Industrial Asphalts Rs. 710 million ( 635 million shares traded). During the day  996 million share volumes changed hands in 67878 transactions.

During the day banking sector counters noted significant appreciation of their stocks and several index heavy companies such as, JKH, Dipped Products and Melstacorp showed significant appreciation in their stocks.

Sri Lanka’s rupee quoted firmer around 196.50/198 to the US dollar in spot next market on Monday while bond yields remained unchanged, dealers said. Rupee last closed around 197/200 in the spot-next market on Friday against the greenback with deals done around 198 levels, market participants said. There were spot interventions at 195.50 levels.