Share market sees marked buying interest due to positive outlook on debt restructuring front

By Hiran H. Senewiratne

The stock market yesterday started off on a profit- taking stance but by the middle of the session heavy buying interests were noted among banking sector counters due to the positive status quo in the external debt restructuring exercise, market analysts said.

Consequently, the stock market recorded a new high in trading yesterday as bullish investor sentiment boosted activities, especially in the banking sector. This resulted in both indices moving up. The All Share Price Index rose by 40.35 points, while S and P SL 20 moved to 6.72 points.

Turnover stood at Rs 2.5 billion with seven crossings. Those crossings were reported in Ambeon Capital, which crossed 39.4 million shares to the tune of Rs 354 million; its shares traded at Rs 9, Hayleys 500,000 shares crossed for Rs 44.25 million; its shares traded at Rs 88.50, Lanka Aluminium 1 million shares amounting to Rs 25.50 per shares, crossed to the tune of Rs 25.50 million, NDB 300,000 shares crossed for Rs 23.1 million and its shares traded at Rs 77, Access Engineering 1 million shares crossed to the tune of Rs 23; its shares traded at Rs 23, Pan Asia Bank 903,000 shares crossed for Rs 21.1 million and its shares sold at Rs 23.30 and LOLC Holdings 50000 shares crossed for Rs 20.2 million and its shares traded at Rs 405.

In the retail market top seven companies that mainly contributed to the turnover were; Commercial Bank Rs 150 million (1.3 million shares traded), HNB Rs 90.8 million (454,000 shares traded), Sampath Bank Rs 82.4 million (1 million shares traded), Capital Alliance Rs 81.4 million (1.3 million shares traded) and Vallibel One Rs 80.8 million (1.5 million shares traded). During the day 135 million share volumes changed hands in 19200 transactions.

It is said that high net worth and institutional investor participation was noted in Sampath Bank, JKH and Hemas Holdings. Mixed interest was observed in Commercial Bank, Lanka Aluminium Industries and Lanka IOC, while retail interest was noted in Citrus Leisure rights, Browns Investments and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Commercial Bank) while the sector index gained. The share price of Sampath Bank increased by Rs. 2.90 to reach Rs. 80.90. The share price of Commercial Bank recorded a gain of Rs. 4.75 to reach Rs. 110.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hemas Holdings) while the sector index increased by 0.28%. The share price of John Keells Holdings closed flat at Rs. 199. The share price of Hemas Holdings moved up by Rs. 2 to Rs. 83.

Yesterday the rupee opened at Rs 298.60/65 to the US dollar in the spot forex market, stronger from 298.90/299.00 on Monday, dealers said, while bond yields were down.

A bond maturing on 15.12.2026 was quoted at 11.35/40 percent from 11.35/45 percent. A bond maturing on 15.09.2027 was quoted stable at 11.85/12.00 percent. A bond maturing on 15.12.2028 was quoted at 12.05/15 percent, down from 12.10/20 percent. A bond maturing on 15.09.2029 was quoted at 12.15/30 percent from 12.20/40 percent.