Seven-hour power cut and fuel prices hit share market

By Hiran H. Senewiratne

Gloom settled on CSE investors yesterday due to negative external and internal environmental factors. Many sectors are going to be affected due to the seven-hour scheduled power cut and from the increase in Brent crude oil prices which have touched US$ 113 per barrel, the highest such price in history , stock market analysts said.

Amid those developments the CSE started on a positive note but later turned negative because stock market investors were concerned about power cuts and the fuel crisis due to the shortage of dollars in the country. This created a major impact on the stock market, brokers said.

Both CSE indices moved downwards. The All- Share Price Index went down by 152.6 points and S and P SL20 declined by 60.8 points. Turnover stood at Rs 3 billion which was below the average level of Rs 3.5 billion. No crossings took place and the companies that mainly contributed to the turnover were; Expolanka Holdings Rs 607 million (two million shares traded), Browns Investments Rs 264 million (21.4 million shares traded), Commercial Leasing and Finance Rs 228 million (4.8 million shares traded), Lanka IOC Rs 191 million (2.9 million shares traded), Sunshine Holdings Rs 189 million (3.6 million shares traded), LOLC Finance Rs 171 million (7.5 million shares traded) and Softlogic Life Insurance Rs 158 million (1.3 million shares traded) .During the day 132 million share volumes changed hands in 34000 transactions.

It is said that high net worth and institutional investor participation was noted in Royal Ceramics, Hayleys and Commercial Bank. Mixed interest was observed in Expolanka Holdings, Commercial Leasing & Finance and LOLC Holdings, while retail interest was noted in Browns Investments and LOLC Finance.

Separately, Keells Food Products and Lanka Tiles announced their interim dividends of Rs. 7 and Rs. 1.80 per share respectively, while Union Assurance announced a first and final dividend of Rs. 22 per share.

Sri Lanka’s bond yields edged up yesterday in dull trade, dealers said and the Central Bank’s indicative spot rate declined marginally. In debt markets, a bond maturing on 01/08/2025 was quoted at 13.00/13.05 per cent on Wednesday, up from 12.90/13.00 per cent on Monday.

Dealers said all other bonds were inactive. At the time of filing, the Central Bank had not published the indicative rates for the dollar yesterday.

However, the US dollar was quoted at Rs 201.90, which was the Central Bank controlled price. However, the outside market is quoting at the Rs 250 level, which would likely touch Rs 300 towards the end of the year, financial analysts said.