Share market trading starts on positive note but fizzles out

By Hiran H.Senewiratne

The CSE started on a positive note yesterday but its momentum could not be sustained for long because investors are continuing to worry about the market despite the government’s assurances on debt restructuring, which was an IMF recommendation, market analysts said.

The market edged- down in stagnant conditions in mid- day trade. However, the financial sector is seeing some positive gains as debt restructuring and optimization have been assured, these analysts added.

Amid those developments, the market was driven by the retail market and both indices were on a downward trend. The All- Share Price Index went down by 12.53 points and S and P SL20 too declined by 5.21 points. Turnover stood at Rs 785 million without any crossings.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 165.3 million (1.1 million shares traded), Lanka IOC Rs 74.8 million (513,000 shares traded), HNB Rs 68.1 million (576,000 shares traded), Dialog Axiata Rs 48.7 million (4.6 million shares traded), Sampath Bank Rs 25.9 million (489,000 shares traded), Browns Investments Rs 25 million (4.7million shares traded) and Hayleys Rs 22.2 million (321,000 shares traded). During the day 94.7 million share volumes changed hands in 11000 transactions.

Analysts said that Lanka IOC was losing due to falling retail prices despite recording good profits. Expolanka was down on poor earnings reports and Dialog Axiata is witnessing profit- taking on merging news with Airtel.

The bond yields were down in mid-day trade and the rupee is at Rs 313.10/40 against the US dollar in the spot market, dealers said.

A bond maturing on 01.09.2027 was quoted at 28.10/30 per cent, down from 28.40/60 per cent at yesterday’s close. A bond maturing on 15.05.2026 was quoted at 29.30/25 per cent on Friday, also steady from 30.10/70 per cent at yesterday’s close. A bond maturing on 01.05.2025 was quoted at 30.00/25 per cent down from 31.00/25 per cent at last close.The rupee was trading at Rs 313.10/40 against the US dollar in the spot market, steady from the last close at Rs 313.00/30.