Stock market’s negative trends continue; investor confidence seen as having been undermined

By Hiram H.Senewiratne

President Ranil Wickremesinghe’s comments on the stock market in parliament recently have had the effect of undermining the confidence investors have had in the bourse. This factor contributed towards the continuation of negative market trends yesterday as well, market watchers said.

Consequently, both indices moved downward with a low turnover level. The All- Share Price Index went down by 292 points and S and P SL 20 declined by 1.2 points. Turnover stood at Rs 895 million with two crossings. Those crossings were reported in Keells Hotels, which crossed 2.9 million shares to the tune of Rs 52.2 million, its shares traded at Rs 18 and HNB 300,000 shares crossed to the tune of Rs 34.5 million, its shares traded at Rs 115.

In the retail market top five companies that mainly contributed to the turnover were; Expolanka Holdings Rs 128 million (796,000 shares traded), Dialog Axiata Rs 93.8 million (8.5 million shares traded), Lanka IOC Rs 70.6 million (427,000 shares traded) JKH Rs 57.1 million (413,000 shares traded) and Browns Investments Rs 50.2 million (8.9 million shares traded). During the day 42.5 million share volumes changed hands in 10000 transactions.

Yesterday the Central Bank’s US dollar buying rate was Rs 313.92 and the selling rate Rs 328.75.