Share trading momentum hampered by transparency concerns

By Hiran H.Senewiratne

Stock market trading kicked off on a positive note yesterday but during the second session such momentum could not be sustained because bond holders have raised transparency concerns with regard to debt rescheduling, market analysts said.

Both indices moved upwards but the turnover level has not improved to the average level of Rs 1.5 billion. The All Share Price Index went up by 23.33 points and S and P SL20 rose by 21.39 points. Turnover stood at Rs 7.8 million with one crossing. The crossing was reported in Chevron Lubricant, which crossed 250,000 shares to the tune of Rs 22 million and its shares traded at Rs 88.

In the retail market top seven companies that mainly contributed to the turnover were; Lanka IOC Rs 51.5 million (487,000 shares traded), Sampath Bank Rs 51.1 million (712,000 shares traded), Distilleries Rs 46.8 million (1.6 million shares traded), Lanka Milk Food Rs 44.7 million (197,000 shares traded), NTB Rs 43.6 million (401,000 shares traded), Melstacope Rs 27.7 million (347,000 shares traded) and HNB Rs 27.5 million (161,000 shares traded). During the day 21.9 million share volumes changed hands in 9200 transactions.

Yesterday, the rupee opened stable at Rs 328.00/328.10 to the US dollar, dealers said.

The bond market was stable. A bond maturing on 01.08.2026 was quoted at 13.90/14.00 percent from 13.90/14.05 percent. A bond maturing on 15.01.2027 closed at 14.00/15 percent from 14.05/10 percent. A bond maturing on 01.07.2028 was quoted at 14.20/30 percent from 14.15/25 percent.