Shares edge-up for seventh straight session; indices rise

By Hiran H.Senewiratne

CSE traded on a positive note throughout yesterday as shares edged up in mid- day trade for the seventh straight session, following foreign reports that the IMF is likely to lend Sri Lanka the long- awaited US$ 2.9 billion loan without debt restructuring assurances from China.

Cash dividends have been declared by Sampath Bank and DFCC Bank, which move has prompted some confidence in the banking sector, promising some stability and economic improvement. “Cash dividends come as an indication of normalization, said an analyst.

Investors are in a wait- and- see stance, anticipating rate cuts in the CBSL’s Monetary Policy Review, scheduled for March 2. However, yesterday the stock market functioned positively with satisfactory retail and institutional participation along with positive turnover numbers, stock market analysts said.

Amid those developments both indices moved upwards. The All- Share Price Index went up by 59.9 points and S and P SL20 rose by 14.7 points. Turnover stood at Rs 2.1 billion with six crossings. Those crossings were reported in Hemas Holdings, which crossed 2.4 million shares to the tune of Rs 155 million, its shares traded at Rs 64, Lanka IOC 778,000 shares crossed for Rs 153 million, its shares traded at Rs 197.25, Royal Ceramic five million shares crossed for Rs 150 million and its shares fetched Rs 30, Hayleys PLC 680,000 shares crossed for Rs 53 million and its shares traded at Rs 78, Nations Trust Bank 500,000 shares crossed for Rs 33.5 million, its shares traded at Rs 67 and Commercial Bank 307,000 shares crossed to the tune of Rs 20.1 million and its shares fetched Rs 65.50.

In the retail market, top seven companies that mainly contributed to the turnover were, Hayleys PLC Rs 110 million (1.4 million shares traded), Nations Trust Bank Rs 94.5 million (1.4 million shares traded), Royal Ceramic Rs 93 million (three million shares traded), Sampath Bank Rs 78.7 million (1.5 million shares traded), Lanka IOC Rs 77.1 million (387,000 shares traded), JKH Rs 76.3 million (550,000 shares traded) and Hemas Holdings Rs 74.7 million (1.17 million shares traded). During the day 84.1 million share volumes changed hands in 18000 transactions.

Yesterday, the Central Bank’s US dollar buying rate was Rs 358.72 and the selling rate Rs 368.77.