Positive turn at CSE following ‘IMF-Govt. staff level agreement’

By Hiran H.Senewiratne

CSE trading became positive yesterday following the IMF staff and the Sri Lankan authorities reaching a staff-level agreement on the first review under an economic reform program supported by the 48-month US$ 3 billion Extended Fund Facility (EFF) arrangement.

Accordingly, Sri Lanka will have access to about US$330 million in financing once the review is approved by the IMF management and IMF Executive Board, the IMF said in a release yesterday.

The IMF said macroeconomic policy reforms are starting to bear fruit and the economy is showing tentative signs of stabilization. “Sustaining the reform momentum and addressing governance weaknesses and corruption vulnerabilities are critical to put the economy on a path towards lasting recovery and stable and inclusive growth, it said.

Amid those developments both indices moved up. The All- Share Price Index went up by 280 points and S and P SL20 rose by 106.9 points. Turnover stood at Rs 909 million with one crossing. The crossing was reported in LB Finance, which crossed 500,000 shares to the tune of Rs 30.7 million; its shares traded at Rs 1.50.

In the retail market, top seven companies that mainly contributed to the turnover were; JKH Rs 97.1 million (508,000 shares traded), First Capital Treasuries Rs 71.7 million (2.2 million shares traded), First Capital Holdings Rs 62 million (1.19 million shares traded), Sampath Bank Rs 43.7 million (680,000 shares traded), Browns Investments Rs 34.9 million (6.4 million shares traded), Capital Alliance Rs 32.9 million (549,000 shares traded and SLT Rs 23.5 million (247,000 shares traded). During the day 36.6 million share volumes changed hands in 13800 transactions.

It is said that high net worth and institutional investor participation was noted in R I L Property and Nations Trust Bank. Mixed interest was observed in JKH, Lanka IOC and LB Finance, while retail interest was noted in Browns Investments, First Capital Holdings and First Capital Treasuries.

The Diversified Financials sector was the top contributor to the market turnover (due to First Capital Holdings and First Capital Treasuries), while the sector index gained 0.76%. The share price of First Capital Holdings decreased by 80 cents to settle at Rs 50.90. The share price of First Capital Treasuries moved up by 40 cents to reach Rs 41.10.

The Retailing sector was the second highest contributor to the market turnover, while the sector index decreased by 0.24 percent.

JKH, First Capital Treasuries and First Capital Holdings were also included among the top turnover contributors. The share price of R I L Property gained 10 cents to reach Rs 5.80. The share price of John Keells Holdings recorded a gain of 75 cents to reach Rs 191. The share price of Lanka IOC edged down Rs 10 cents to settle at Rs 99.Yesterday the US dollar buying rate was Rs 319.64 and the selling rate Rs 330.41.