Optimism in share market following reassurances of support for SL’s debt restructuring by creditors

By Hiran H.Senewiratne

CSE trading activities were positive throughout yesterday and some optimism was noted in all sectors. The positive outlook stemmed from creditors’ reassurances of support for restructuring the country’s external debt to enable it to obtain an IMF bailout. India’s External Affairs Minister S Jaishankar, for instance, pledged to support crisis-hit Sri Lanka’s debt restructuring efforts, stock market analysts said.

Consequently, shares shot up in mid- day trade. The market moved to green territory due to India agreeing to restructure debts and investors expect China to follow suit, the analysts said.

On top of that, at the Treasury Bill auction, Treasury Bill prices indicated a declining trend, which also helped to improve investor sentiment in the market, market analysts added. The market had seen a pick- up after President Ranil Wickremesinghe said that debt restructuring talks with India and China are successful.

Amid those developments both indices moved upwards. The All-Share Price Index went up by 233.23 points and S and P SL20 rose by 89.6 points. The e market generated a turnover of Rs. 2.24 billion within four crossings. Those crossings were reported in JKH, which crossed 500,000 shares to the tune of Rs 48.75 million, its shares traded at Rs 137.50, Lion Brewery 8600 shares crossed for Rs 52.1 million, its shares fetched Rs 600, Sampath Bank one million shares crossed for Rs 40 million and its shares traded at Rs 40 and HNB 265,000 shares crossed to the tune of Rs 20.9 million, its shares fetched Rs 39.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 221 million (1.1 million shares traded), Hayleys Rs 221 million (2.9 million shares traded), Hemas Holdings Rs 132 million (2.2 million shares traded), Sampath Bank Rs 101 million (2.5 million shares traded), People’s Leasing Rs 90.9 million (14.6 million shares traded), Softlogic Life Insurance Rs 89.1 million (834,000 shares traded) and Browns Investments Rs 77.1 million (11.5 million shares traded). During the day 89.9 million share volumes changed hands in 21000 transactions.

In previous sessions, the market was carried on life insurance shares, but the market is moving on broader interest and pickup, analysts further stated.It is said high net worth and institutional investor participation was noted in JKH. Mixed interest was observed in Hayleys, First Capital Holdings and Capital Alliance, while retail interest was noted in Industrial Asphalts, LOLC Finance and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys and JKH) while the sector index gained 1.14 per cent. The share price of Hayleys increased by Rs. 6.30 (9.80 per cent) to close at Rs. 70.60. The share price of JKH lost 50 cents to close at Rs. 136.25.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital, First Capital Holdings and Capital Alliance) while the sector index increased by 0.49%.

The share price of Softlogic Capital moved up by 10 cents to close at Rs. 15.10. The share price of First Capital Holdings recorded a gain of Rs. 1.30 (3.77 per cent) to close at Rs. 35.80. The share price of Capital Alliance declined by 40 cents to close at Rs. 31.10.