Business
Share market declines in the wake of ‘negative reporting’
By Hiran H.Senewiratne
CSE trading activities were negative throughout yesterday due to unfavourable reports by a foreign media organization that certain economic strategists had recommended domestic debt restructuring, which report had the effect of painting a gloomy picture of the local share market, stock market analysts said.
CSE shares slipped in mid- day trade on profit- taking because of the holiday season, apart from the media report, an analyst said. Further, investors are booking profits because of the holidays, while some are taking profits ahead of earnings reports, an analyst said.
The stock market began the fresh week on a negative note on the previous day though net foreign inflow continued to set new records. Thanks to continued buying into Expolanka Holdings by parent SG Holdings of Japan, net foreign inflow amounted to Rs. 809 million, propelling the year-to-date figure to be over Rs. 25.4 billion, a 10-year high.
Amid those developments both indices moved downwards. The All- Share Price Index went down by 140.9 points and S and P SL20 declined by 61.2 points. Turnover stood at Rs 2.8 billion with four crossings. Those crossings were reported in Expolanka Holdings, which crossed 5.4 million shares to the tune of Rs 1.1 billion, its shares traded at Rs 210, JKH one million shares crossed to the tune of Rs 140 million, its shares trading at Rs 140, Lanka IOC 250,000 shares traded to the tune of Rs 52.5 million, its shares fetched Rs 210 and CIC Holdings 250,000 shares crossed for Rs 21.3 million, its shares fetched Rs 85.
In the retail market top seven companies that contributed to the turnover were; Lanka IOC Rs 336 million (1.6 million shares traded), Expolanka Holdings Rs 274 million (1.3 million shares traded), Browns Investments Rs 143.3 million (20.7 million shares traded), First Capital Holdings Rs 83.8 million (2.9 million shares traded), Softlogic Life Insurance Rs 74.3 million (1.2 million shares traded), CIC Holdings Rs 73.6 million (865,000 shares traded) and Softlogic Capital Rs 47.8 million (7.5 million shares traded). During the day 70.7 million shares changed hands in 15000 transactions.
It is said high net worth and institutional investor participation was noted in Expolanka Holdings, CIC Holdings and JKH. Mixed interest was observed in Lanka IOC, Richard Pieris & Company and First Capital Holdings, while retail interest was noted in Browns Investments, Softlogic Capital and LOLC Finance.
The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) while the sector index lost 0.24 per cent. The share price of Expolanka Holdings decreased by 50 cents to close at Rs. 206.75.
The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) while the sector index decreased by 5 per cent. The share price of Lanka IOC lost Rs. 12 (5.18 per cent) to close at Rs. 219.50.
Yesterday, the Central Bank- announced US dollar parity rate was Rs 371.77.