Mixed tendencies at CSE as authorities take positive stand on $ I billion bond repayment

By Hiran H. Senewiratne

Sri Lanka plans to repay a US $1 billion bond, keeping intact its reputation for honouring repayment of debts, as concern mounts about the country’s overseas financing. Authorities will transfer the required funds on Monday, State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal said.

Moody’s Investors Service placed Sri Lanka’s ratings under review for a downgrade last week, citing its assessment of the country’s increasingly fragile external liquidity position and the risk of default.

However, the Central Bank’s move on allowing local commercial banks to invest in International Sovereign Bonds would enable the country to recover US $ 300 million out of the US $ one billion. This would lower the short term foreign currency requirement, thus enabling stock market investors to be more attractive for investments in the future, market analysts said.

Amid those developments, the CSE reflected positive trends at the beginning of yesterday but later declined with the witnessing of profit takings. Consequently, both indices moved downwards. All Share Price Index went down by 14.03 points and S and P SL20 declined by 14.36 points. Turnover stood at Rs. 4.6 billion with six crossings.

Those crossings were reported in Asiri Hospital Holdings, which crossed 40.1 million shares to the tune of Rs. 1.12 billion, its shares traded at Rs. 28, CTC Holdings 1.6 million shares crossed for Rs. 297 million, its shares traded at Rs. 183, Lanka Milk Food 1.42 million shares crossed for Rs. 241 million, its shares fetched Rs. 170, Alumax 2.1 million shares crossed for Rs. 31.5 million, its shares traded at Rs. 15, Central Finance 310,000 shares crossed for Rs. 28.5 million and its shares traded at Rs. 92 and Expolanka 300,000 shares crossed for Rs. 20.4 million while its shares traded at Rs. 68.

In the retail market top five companies that mainly contributed to the turnover were, Expolanka Rs. 856 million (12.6 million shares traded), Dipped Products Rs. 218 million (3.7 million shares traded), LOLC Holdings Rs. 170 million (368.000 shares traded), Royal Ceramic Rs. 164 million (4.1 million shares traded) and Browns Investments Rs. 118 million (18.5 million shares traded). During the day 152.1 million share volumes changed hands in 29600 transactions.