Positive share market forecasts for 2024 stimulate CSE

By Hiran H. Senewiratne

The stock market performed positively but it did not create a strong momentum despite being rendered active by retail and institutional buyers yesterday. The local bourse reacted positively, though, when global stock market specialists forecast that 2024 will be a good year for bourses, including that in Sri Lank, market analysts said.

Apart from that, major shipping lines, including Mercs and Evergreen, were worried as Yemen’s Houthi rebels launched attacks on cargo vessels in the Red Sea heading for Israel. Such events would tend to increase shipping cost and disrupt the oil business, market analysts said.

The All Share Price Index went up by 19.95 points and S and P SL20 rose by 14.68 points. Turnover stood at Rs 2.2 billion with four crossings. Some of those crossings were reported in Cargills, which crossed 1.7 million shares to the tune of Rs 586 million; its shares traded at Rs 380, Ceylon Theatres 700,000 shares crossed for Rs 199.5 million; its shares traded at Rs 285 and Renuka Hotel 287,000 shares crossed to the tune of Rs 24 million; its shares sold at Rs 83.70.

In the retail market, top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 28.3 million (202,000 shares traded), JKH Rs 27.8 million (146,000 shares traded), Melstacope Rs 23.6 million (281,000 shares traded), HNB Rs 22.4 million (134,000 shares traded), PT Holdings Rs 16.7 million (590,000 shares traded), NTB Rs 14.4 million (138,000 shares traded) and Sampath Bank Rs 13.3 million (187,000 shares traded). During the day 19.6 million share volumes changed hands in 5000 transactions.

It is said that mixed interest was observed in Agarapatana Plantations, Expolanka Holdings and Access Engineering, while retail interest was noted in Browns Investments, Dialog Axiata and Associated Motor Finance Company.

The Materials sector was the top contributor to the market turnover (due to Agstar and Agstar nonvoting), while the sector index gained 0.20 percent. The share price of Agstar increased by 90 cents to reach Rs. 8.90.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank, HNB and NTB) while the sector index decreased.

Yesterday the rupee opened at Rs 326.00/25 to the US dollar, from Rs 326.75/85 the previous day, dealers said.

Bond yields were broadly steady. A bond maturing on 01.08.2026 was quoted at 13.70/80 percent from 13.70/85 percent. A bond maturing on 15.01.2027 was quoted at 13.80/90 percent from 13.60/75 percent. A bond maturing on 01.07.2028 was quoted at 14.05/10 percent from 14.05/15 percent.