State Minister’s comment injects bounce into bourse

By Hiran H. Senewiratne

State Minister of Finance Shehan Semasinghe’s announcement at the Cabinet meeting yesterday to the effect that dollar bondholders/external debt holders have shown a positive response to the debt restructuring exercise had an invigorating impact on the CSE.

‘The comment gave an impetus to trading activities on the CSE floor and indicated profit- takings. Towards the latter part of the day the market transformed into a recovery stance, bourse sources said.

Further, the Central Bank revealed that this year’s GDP growth would be more than 3 percent, which too resulted in the market turning positive, market analysts said.

Due to these developments the stock market recorded the highest Index rate of 12368 points in two years.

The All Share Price Index went up by 57.56 points, while the S and P SL 20 rose by 5.89 points. Turnover stood at Rs 3.8 billion with seven crossings.

Those crossings were reported in JKH, where 1.9 million shares crossed to the tune of Rs 397 million, its shares traded at Rs 209.25, Lanka IOC 2.2 million shares crossed for Rs 294 million; its shares traded at Rs 132.50, Royal Ceremic 4.9 million shares crossed for Rs 165 million; its shares sold at Rs 33.30, Ceylon Cold Stores 700,000 shares crossed for Rs 34.1 million; its share price was Rs 63,LB Finance 500,000 shares crossed to the tune of Rs. 35.5 million and its shares fetched Rs 71,NDB 450,000 shares crossed for Rs 43.6 million; its shares traded at Rs 77 and Three Acre Farms 620,000 shares crossed for Rs 20.1 million; its shares sold at Rs 325.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 228 million (1.1 million shares traded), Janashakthi Insurance Rs 197 million (3.6 million shares traded), Browns Investments Rs 146 million (22.6 million shares traded), CIC Holdings Rs 135 million (1.7 million shares traded), Lanka IOC Rs 124 million (946,000 shares traded), LB Finance Rs 106 million (1.4 million shares traded) and Vallibel One Rs 88.7 million (1.5 million shares traded). During the day 167 million shares volumes changed hands in 23000 transactions.

Yesterday, the rupee opened at Rs 297.50/298.50 to the US dollar from 297.80/298.50 the previous day, dealers said.

Bond yields were considerably down, dealers said. A bond maturing on 15.12.2026 was quoted down at 10.80/85 percent from 10.95/11.05 percent. A bond maturing on 15.09.2027 was quoted down at 11.15/20 percent from 11.40/55 percent. A bond maturing on 15.03.2028 was quoted down at 11.55/60 percent from 11.60/70 percent.