Share market turns extra bullish as corporate earnings soar

By Hiran H.Senewiratne

The stock market yesterday recorded an extra- bullish session as a result of trading up because of the positive sentiment coming from company earnings and dividend payments. The market thus far seems to be positive, market analysts said.

Significantly, turnover crossed the Rs 1 billion mark, with the Capital Goods Industry contributing almost half, followed by the Transportation Industry and Diversified Financials Industry, market analysts said.

“What we are noticing in earnings is that almost all companies, all sectors, are showing improvement in earnings on a quarter on quarter basis. An evident pickup in economic activity has also been something of a confidence booster, market analysts told the Island Financial Review.

Amid those developments both indices moved upwards. The All- Share Price Index went up by 93.06 points and S and P SL20 rose by 32.3 points. Turnover stood at Rs 1.9 billion with two crossings. Those crossings were reported in JKH, which crossed 1.1 million shares to the tune of Rs 212 million; its shares traded at Rs193 and Expolanka Holdings 332,000 shares crossed for Rs 43.16 million; its shares traded at Rs 130.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 551 million (2.8 million shares traded), Expolanka Holdings Rs 183 million (1.4 million shares traded), Capital Alliance Rs 110 million (1.7 million shares traded), LOLC Holdings Rs 94.9 million (242,000 shares traded), Cargills Rs 70.3 million (187,000 shares traded), First Capital Holdings Rs 44.4 million (1.2 million shares traded) and Sampath Bank Rs 40.8 million (609,000 shares traded).

Shares of Sampath Bank, Central Finance, Browns Investments, LOLC Finance and C T Holdings, all saw gains.. During the day 34 million share volumes changed hands in 11000 transactions.

Yesterday the rupee was quoted weaker at 327.10/25 in mid-morning trade from the previous day’s close of Rs 326.75/327.25, dealers said.

The quote for smaller deals was about Rs 327.00/25 and for larger deals around Rs 327.10/50, indicating that the market was a little oversold, dealers said. The rupee strengthened yesterday after almost touching Rs 330, market participants said.