Power cut rumours hit stock market amid profit-taking

By Hiran H.Senewiratne

CSE trading started on a positive note yesterday but in the middle of the session it turned negative due to profit- takings in most valued counters. The reason being that shareholders panicked over possible power cuts, which would hit manufacturing related counters. However, a few hours before wrapping- up the market, it turned positive, when the government scotched rumours over power cuts in the future, stock market analysts said.

According to brokers the Index opened on a significant upswing and remained high into the first hour of the session. Subsequently, the index declined slightly with minimum fluctuations, yet managed to hold onto the green territory before closing for the day at 13,457.

It is said the bourse closed in the green zone for the third straight session driven by investor expectations on solid earnings in selected counters with a slightly improved turnover.

The All- Share Price Index went up by 5.1 points and S and P SL20 rose by 12.96 points. Turnover stood at Rs 5.5 billion with five crossings. Those crossings were reported in LOLC Finance, which crossed 4.9 million shares to the tune of Rs 137 million and its shares traded at Rs 28, Commercial Bank 785,000 shares crossed for Rs 65.1 million, its shares traded at Rs 83, Cargills 200,000 shares crossed for Rs 43 million, its shares traded at Rs 215, Pan Asia 2.5 million shares crossed for Rs 43 million, its shares traded at Rs 17 and Sampath Bank 748,000 shares crossed for Rs 41.2 million, its shares traded at Rs 55.

In the retail market top seven companies that mainly contributed to the turnover were Vallibel One Rs 379 million (four million shares traded), ACL Cables Rs 388 million (3.4 million shares traded), Browns Investments Rs 268 million (15.9 million shares traded), TJLanka Rs 253 million (4.5 million shares traded), Chevron Lubricants Rs 227 million (1.7 million shares traded), Expolanka Holdings Rs 221 million (1.7 million shares traded) and Sunshine Holdings Rs 197 million ( three million shares traded). During the day 205 million share volumes changed hands in 46000 transactions.

The Capital goods sector was the top contributor to the market turnover (due to Vallibel One), whilst the sector index gained 1.10 per cent. The share price of Vallibel One increased by Rs. 9.60 (10.93 per cent) to close at Rs. 97.40. Diversified Financials sector was the second-highest contributor to the market turnover (due to Softlogic Capital) whilst the sector index increased by 0.95 per cent. The share price of Softlogic Capital moved up by Rs. 2.20 (18.49 per cent) to close at Rs. 14.10.

Yesterday, the US dollar was quoted at Rs 203.65, which was the Central Bank controlled price to prevent prices from going up for all imported essential items, sources said.