Recovery in investor sentiment at CSE

By Hiran H.Senewiratne

The stock market made a welcome recovery in terms of sentiment the day before and yesterday as well though the trading level was below the recent average. Further, most index heavy counters were noted for positive trends and showed gains, market analysts said. With the forthcoming release of the CBSL road map many investors are anticipating a further market friendly environment in this low interest regime, market analysts said.

Both indices showed an upward trend. The All Share Price Index went up by 43.8 points and S and P SL-20 Index rose by 33. 9 points. Turnover stood at Rs. 2.02 billion with two crossings. Those crossings were reported in Union Bank Colombo PLC, which crossed 3.9 million shares to the tune of Rs. 42.8 million, its shares traded at Rs. 10.80 and Royal Ceramic 800,000 shares crossed for Rs. 32.8 million, its shares trading at Rs. 41.

In the retail market, five companies that mainly contributed to the turnover were, Expolanka Holdings Rs. 769 million (4.4 million shares traded), Browns Investments Rs. 194 million (21.2 million shares traded), Melstacorp Rs. 98.2 million (1.7 million shares traded), Kotagala Plantations Rs. 87.8 million (14. 6 million shares traded) and JKH Rs. 69.8 million (517,000 shares traded).

Main contributors to the All Share Price Index were, Expolanka (20.8 points), JKH (8.1 points), LOLC (4.8 points) and Hayleys (4.2 points). During the day construction sector counters were the main contributors to the turnover, which accounted for Rs. 769 million or 30 percent. Two other sectors were, food and beverages and tobacco and capital goods. During the day 100 million share volumes changed hands in 18000 transactions.

It said high net worth and institutional investor participation was noted in John Keells Holdings, Sampath Bank and Renuka Hotels. Mixed interest was observed in Expolanka Holdings, Hayleys and LOLC Holdings, while retail interest was noted in Browns Investments, Citrus Leisure and Industrial Asphalts.

It is said that the US dollar rate was Rs. 200.67, which is now not going beyond Rs. 203 due to Central Bank monetary control mechanisms.