Primary dealer company shares appreciate in the wake of speculation on interest rates

By Hiran H.Senewiratne

Sri Lanka shares moved up in mid-day trade yesterday, pushed up by index heavy counters Expolanka and Lanka IOC. But share prices in primary dealer companies have been appreciating due to speculation on interest rates declining soon, stock market analysts said.

Analysts said although the market is trading in green, the overall market is flat as it is awaiting more news on key catalysts, such as the IMF economic bailout. Meanwhile, IMF chief Kristalina Georgieva has called on China to speed up restructuring of debt in Sri Lanka and Zambia following a meeting with the leaders of those countries.

“We had a very fruitful exchange, both on the G20 Common Framework and on some specific cases, she said in a statement after the meeting.

“We need to build on the momentum of the agreement on Chad’s debt treatment and accelerate and finalize the debt treatments for Zambia and Sri Lanka, which would allow for disbursements from the IMF and multilateral development banks, she said.

Amid those developments both indices indicated mixed reactions. The main All- Share Price Index gained 18.7 points and the S and P SL20 declined by 7.4 points. Turnover stood at Rs 1.6 billion without a single crossing. In the retail market, top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 303 million (1.5 million shares traded), Lanka IOC Rs 280 million (1.2 million shares traded), First Capital Treasuries Rs 185 million (6.9 million shares traded), First Capital Holdings Rs 158 million (4.8 million shares traded), Browns Investments Rs 123 million (15.1 million shares traded), Capital Alliance Rs 85 million (3.6 million shares traded) and Richard Pieris Rs 62.8 million (2.3 million shares traded). During the day 67.5 million share volumes changed hands in 18000 transactions.

Yesterday, the US dollar buying rate was Rs 361.19 and the selling rate 371.71.