Macroeconomic indicators positively impact CSE

By Hiran H.Senewiratne

CSE trading indicated some positive sentiment throughout yesterday with macroeconomic indicators having an impact, including the inflation level declining, as per the Census and Statistics Department, and the appreciation of the rupee as against the US dollar, stock market analysts said.

A late rally on banking sector stock on the previous day propelled the Colombo bourse to positive territory with improved turnover. Therefore, the turnover level and investor participation improved, analysts said.

Until the last 20 minutes of trading the CSE was continuing on a negative trend experienced in the past three sessions. A sudden spike in interest in the banking sector made the CSE come alive. Amid those developments both indices moved upwards. The All- Share Price Index went up by 119 points and S and P SL20 rose by 8.03 points.

Turnover stood at Rs 940 million with three crossings. Those crossings were reported in Piramal Glass, which crossed 2.8 million shares to the tune of Rs 57.2 million, its shares traded at Rs 20.30, Lanka IOC 200,000 shares crossed to the tune of Rs 26 million, its shares traded at Rs 130 and Windforce 1.5 million shares crossed to the tune of Rs 25 million; its shares fetched Rs 16.70.

In the retail market top seven companies that mainly contributed to the turnover were; HNB Rs 151 million (1.2 million shares traded), Lanka IOC Rs 140.6 million (one million shares traded), Expolanka Holdings Rs 76.8 million (548,000 shares traded), Ceylon Cold Stores Rs 50.9 million (1.3 million shares traded), Access Engineering Rs 27.9 million (1.9 million shares traded), Piramal Glass Rs 22 million (1.1 million shares traded) and Browns Investments Rs 21.7 million (4.2 million shares traded). During the day 42.7 million share volumes changed hands in 10000 transactions.

It is said high net worth and institutional investor participation was noted in HNB, Standard Capital and Windforce. Mixed interest was observed in Aitken Spence Hotel Holdings, Lanka IOC and Expolanka Holdings, while retail interest was noted in Industrial Asphalts, Browns Investments and SMB Leasing nonvoting.

The Banking sector was the top contributor to the market turnover (due to HNB), while the sector index gained 1.85 per cent. The share price of HNB increased by Rs. 2 to Rs. 120.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover, while the sector index increased by 0.41 per cent.

The rupee opened at Rs 304.10/30 against the US dollar in the spot market yesterday, dealers said, while bond yields were unchanged.

The Sri Lanka rupee closed at Rs 304.30/90 against the US dollar in the spot market on Tuesday, stronger from Rs 306.30/50 a day earlier.

A bond maturing on 01.09.2027 was quoted at 26.80/27.00 per cent unchanged from Tuesday’s close. A bond maturing on 01.05.2025 was quoted closed at 29.00/30.00 per cent, down from 29.25/30.00 per cent at last close.