Negative speculation on policy rates brings down stock market

By Hiran H.Senewiratne

The stock market fell in mid- day trade yesterday due to speculation that the Central Bank will not be changing its policy rates this week. Further, investors are waiting for more clarity on debt restructuring and debt optimization besides awaiting decisions to be taken at the next CBSL Policy Review Meeting, an analyst said.

Amid those developments both indices showed mixed reactions. The All- Share Price Index went down by 42.5 points and S and P SL20 rose by 3.4 points. Turnover stood at Rs 557.3 million with two crossings. Those crossings were reported in Wind Force, which crossed 3.4 million share volumes to the tune of Rs 57.12 million and its shares traded at Rs 15.80 and JKH 404,000 shares crossed to the tune of Rs 54.7 million; its shares traded at Rs 135.50.

In the retail market top seven companies that mainly contributed to the turnover were; Melstacorp Rs 57.7 million (1.1 million shares traded), Lanka IOC Rs 39.5 million (321,000 shares traded), Tokyo Cement Rs 35.9 million (944,000 shares traded), Browns Investments Rs 24.1 million (4.9 million shares traded), JKH Rs 23.4 million (172,000 shares traded), Expolanka Holdings Rs 23.1 million (172,000 shares traded) and LB Finance Rs 19.5 million (385,000 shares traded). During the day 32.9 million share volumes changed hands in 8900 transactions.

Yesterday the Central Bank announced the US dollar buying rate as Rs 290.67 and the selling rate as Rs 303.95. Inflation had come down to 33.60 percent.