Speculation on corporate quarterly results dampens bourse

By Hiran H. Senewiratne

CSE trading began on a negative note yesterday due to month- end profit- takings coupled with speculation that corporate quarterly results are not going to be satisfactory. However, the plantation sector counter became attractive due to US dollar fluctuations against the rupee, market analysts said.

The market began a fresh week on a negative note ending a 15-day winning streak. But shares edged down in mid-day and continued in that negative trend until trading activities came to an end.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 24.48 points and S and P SL20 declined by 27.9 points. Turnover stood at Rs 2.5 billion without any crossings.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 363 million (2.2 million shares traded), Lanka IOC Rs 337 million (2.6 million shares traded), Kingsbury Hotel Rs 160.7 million (16.2 million shares traded), Commercial Bank Rs 92.2 million (one million shares traded), Sampath Bank Rs 83.6 million (1.1 million shares traded), NDB Rs 73.3 million (1.1 million shares traded) and Vallible One Rs 53.9 million (1.1 million shares traded). During the day 88.2 million share volumes changed hands 26000 transactions.

It is said that high net worth and institutional investor participation was noted in Cargills, Melstacorp, and Dankotuwa Porcelain. Mixed interest was observed in Lanka IOC, Aitken Spence, and CIC Holdings nonvoting, while retail interest was noted in Browns Investments, RIL Property and SMB Leasing.

The banking sector was the top contributor to the market turnover, while the sector index gained 0.56 percent. The Capital Goods sector was the second highest contributor to the market turnover (due to Aitken Spence) while the sector index decreased by 0.69 percent. The share price of Aitken Spence recorded a gain of 75 cents to reach Rs 149.75.

Cargills, Lanka IOC, Melstacorp, and CIC Holdings nonvoting were also included among the top turnover contributors. The share price of Cargills increased by Rs 25 to reach Rs 323. The share price of Lanka IOC lost Rs. 8 to touch Rs 139.75. The share price of Melstacorp moved up by 30 cents to reach Rs 76.30. The share price of CIC Holdings nonvoting declined by Rs 4.50 to reach Rs 55.10.

Yesterday, the Central Bank’s US dollar buying rate was Rs 323.03 and the selling rate Rs 336.16.