Optimism over arrival of IMF funds boosts CSE

By Hiran H.Senewiratne

It is said that from today onwards IMF representatives will review Sri Lanka’s progress and transfer the relevant funds in its EFF program during this month. The development has brought some confidence to investors, market analysts said.

“We have faced this programme rather successfully. We had agreed on nine conditions required to be fulfilled before the review, and we have done that. The IMF can see that our government is committed to this programme, a top government official told The Island Financial Review.

Amid those developments both indices moved upwards. The All Share Price Index went up by 84.37 points and S and P SL20 rose by 31.7 points. Turnover stood at Rs 1.78 billion with five crossings. Those crossings were reported in Melstacope, which crossed three million shares to the tune of Rs 258 million and its shares traded at Rs 86, RIL Properties 20 million shares crossed for Rs 130 million; its shares traded at Rs 6.50, HNB 615,000 shares crossed to the tune of Rs 109.5 million, its shares traded at Rs 178, NTB 500,000 shares crossed to the tune of Rs 56.6 million, its shares traded at Rs 113.25 and DFCC 227,000 shares crossed to the tune of Rs 20.4 million; its shares traded at Rs 90.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 162 million (861,000 shares traded), Hayleys Rs 116 million (1.2 million shares traded), Distilleries Rs 74.7 million (2.7 million shares traded), Hemas Holdings Rs 54.9 million (678,000 shares traded), Commercial Bank Rs 49.7 million (547,000 shares traded), Chevron Lubricants Rs 45.6 million (496,000 shares traded) and Melstacope Rs 45.1 million (522,000 shares traded). During the day 52.4 million share volumes changed hands in 11500 transactions.

It is said high net worth and institutional investor participation was noted in Hayleys. Mixed interest was observed in Capital Alliance, JKH and CIC Holdings, while retail interest was noted in SMB Leasing nonvoting, Tess Agro and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys), while the sector index lost 0.62 percent. The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance), while the sector index decreased by 0.22 percent.

Yesterday, the US $ buying rate was Rs 316.77 and selling rate Rs 328.53.