Sharp decline in Treasury Bill rates stimulates bourse; turnover exceeds Rs. 1 billion

By Hiran H.Senewiratne

The stock market yesterday kicked off on a positive note and its activities significantly picked up in the second half of the day due to a sharp decline in Treasury Bill rates and the rupee’s appreciation against the US dollar, market analysts said.

When the Treasury Bill Rate comes down, the market rate also changes accordingly, analysts said.These positive developments prompted both indices to move upwards. All Share Price Index was up by 73.7 points and S and P SL20 rose by 47.05 points. Turnover stood at Rs 1.14 billion with five crossings.

Those crossings were reported in LB Finance, which crossed 2.9 million shares to the tune tune of Rs 178 million; its shares traded at Rs 61, NTB 1 million shares crossed to the tune of Rs 100.6 million and its shares traded at Rs 101, Vallible One 1 million shares crossed for Rs 38 million; its shares traded at Rs 38, Hela Clothing 5 million shares crossed for Rs 25 million; its shares traded at Rs 5 and Windforce 1.1 million shares crossed to the tune of Rs 23.3 million; its shares fetched Rs 19.40.

In the retail market top seven companies that mainly contributed to the turnover were; NTB Rs 102 million (1.02 million shares traded), Sampath Bank Rs 92.5 million (1.35 million shares traded), JKH Rs 67.4 million (375,000 shares traded), Commercial Bank Rs 49.8 million (572,000 shares traded), Dialog Rs 39.5 million (4.4 million shares traded), LB Finance Rs 38.6 million (634,000 shares traded) and HNB Rs 32 million (206,000 shares traded). During the day 41.2 million share volumes changed hands in 7206 transactions.

It is said high net worth and institutional investor participation was noted in HNB, Sampath Bank and JKH. Mixed interest was observed in Dialog Axiata, Expolanka Holdings and Lanka IOC, while retail interest was noted in Browns Investments, Marawila Resorts and Softlogic Capital.

The Banking sector was the top contributor to the market turnover (due to NTB and Sampath Bank). The share price of Sampath Bank increased. The share price of HNB closed flat at Rs. 155.

The Diversified Financials sector was the second highest contributor to the market turnover, while the sector index increased by 1.09 percent.

The rupee opened at Rs 314.75/315.00 the US dollar, in the spot forex market, dealers said, with the central bank allowing the currency to appreciate amid a balance of payments surplus it has created, with an appropriate monetary policy.

Sri Lanka’s rupee closed stronger at Rs 315.50/70 to the US dollar. Within the first hour of trading the rupee was quoted as strong as Rs 313.30/314.00 to the US dollar, dealers said.