No effect on Stock Trading from Fitch’s CCC rating

ASPI ends higher amid healthy turnover levels

By Hiran H.Senewiratne 

Share trading at the Colombo Stock Exchange (CSE) was positive overall yesterday and LOLC group of companies dominated indices. Although  Fitch Ratings had affirmed Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘CCC’, that did not have any impact on stock trading, market analysts said.

Reportedly Sri Lanka’s ‘CCC’ rating reflects a challenging foreign-currency sovereign external debt repayment burden over the medium term, low foreign-exchange reserves and high and rising government debt that gives rise to sustainability risks.However, it failed to reflect any spillover effect in the trading activities, stock market analysts said.

Both indices moved upwards. All Share Price Index was up by 35.60 points and S&P SL20 up by 25.08 points. Turnover stood at Rs 2.71 billion sans a single crossing. In the retail market, the top five companies that mainly contributed to the turnover were Expolanka Rs 692 million (13.9 million shares traded), HNB Rs 385.1 million  (2.83 million shares traded), LOLC Rs 283.3 (691,000 shares traded), Browns Investments Rs 144.4 million (22.83 million shares traded) and Dipped Products Rs 104.7 million (1.96 million shares traded).

 During the day, Expolanka share price witnessed a significant price appreciation. Its share price moved up by five percent or Rs 2.60. Its share price started trading at Rs 48.10 and at the end of the day it shot upto Rs 50.70.

Top five contributors to the All Share Price Index were LOLC Development Finance 11.3 points., Expolanka 10 points, LOLC Holdings 8.6 points, Hayleys four points and Carsons 2 points. LOLC Development Finance and LOLC holdings together contributed  20 points to the All Share Price Index points. During the day 88.2 million share volume changed hands in 21085 transactions.

Meanwhile Sinhaputhra Finance announced a debenture issue to raise Rs two billion. The tenure would be five years at an annual coupon rate of 9.25 percent, which was a flat rate of one year plus 3.75 percent return. It will be opened on 18th June 2021.