Positive trend in debt restructuring sending good vibes among CSE investors

By Hiran H.Senewiratne

CSE investors seem to be having a positive mindset currently due to completion of the domestic debt restructuring exercise and the positive response which came from the Chinese side on restoring their debt component, market analysts said

“There is a lot of selling pressure on the primary dealer counter. I think this is because First Capital Treasuries’ share dividend went extinct, that is, the dividend is finished.

“So, because of that, the share has been falling. There has been selling pressure, and that is influencing the other two shares also to come down. That is, First Capital Holdings, and Capital Alliance Treasuries, market analysts said.

Amid those developments both indices moved up marginally yesterday. The All- Share Price Index went up by 11.58 points and S and P SL20 rose by 7.6 points. Turnover stood at Rs 1 billion with two crossings. Those crossings were reported in Sampath Bank, which crossed 3.4 million shares to the tune of Rs 226 million; its shares traded at Rs 66.50 and Melstacope 252,000 shares crossed for Rs 20.1 million; its shares traded at Rs 80.

In the retail market top seven companies that mainly contributed to the turnover were; SLT Rs 118 million (1.17 million shares traded), JKH Rs 77 million (402,000 shares traded), Sampath Bank Rs 57.3 million (853,000 shares traded), Tokyo Cement (Non- Voting) Rs 56.4 million (1.4 million shares traded), First Capital Holdings Rs 44.3 million (868,000 shares traded), Capital Alliance Rs 37.5 million (633,000 shares traded) and Pan Asia Bank Rs 34.7 million (1.7 million shares traded). During the day 31.2 million share volumes changed hands in 11000 transactions.

Last week the IMF announced that they had reached a staff level agreement which would give Sri Lanka access to bail-out funds. The Export-Import Bank of China also said it reached a preliminary agreement with Sri Lanka on debt treatment.

On Friday Sri Lanka’s President Ranil Wickremesinghe met Chinese President Xi Jinping and Vice Premier Ding Xuexiang. A joint statement issued by the leaders read: “China will continue to support its financial institutions in conducting friendly consultations with Sri Lanka to reach early agreement on treatment of debts related to China.

Yesterday the rupee opened at Rs 325.50/326.25 to the US dollar from Rs 325.75/326.25 on Friday, dealers said. Stocks were trading up.

Bond yields were down. A bond maturing on 01.06.2026 was quoted at 14.85/15.00 percent. A bond maturing on 01.05.2027 was quoted at 14.90/15.00 percent. A bond maturing on 01.07.2028 was quoted at 14.55/65 percent from 14.55/14.60 percent.