Stock trading bounces back, thanks to blue chip companies

By Hiran H.Senewiratne

Trading activities at the CSE bounced back yesterday after witnessing a number of volatile trading days. Therefore, the buying interest was noted for blue chip companies that enabled the market to bounce back, market analysts said.

The US Fed kept interest rates unchanged at its November policy meeting, but said it would continue to withdraw excess liquidity from money markets at previously announced rates. This also gave an impetus for foreign investors to be in the market, market analysts said.

Amid those developments both indices moved upwards. All Share Price Index up by 56.06 points and S and P SL20 up by 14.91 points. Turnover stood at Rs one billion with two crossings. Those crossings were reported in Lanka IOC, which crossed 508,000 shares to the tune of Rs 58.5 million and its share price traded at Rs 115 and Vallibel One 1.1 million shares crossed to the tune of Rs 40.8 million and its share price traded at Rs 38.90.

In the retail market top seven companies that mainly contributed to the turnover were JKH Rs 175 million (914,000 shares traded), Expolanka Holdings Rs 100 million (869,000 shares traded), Lanka IOC Rs 67.7 million (604,000 shares traded), Capital Alliance Rs 59.2 million (one million shares traded), Ceylon Grain Elevators Rs 56.5 million (319,000 shares traded, Aitken Spence Rs 42.7 million (341,000 shares traded) and Sampath Bank Rs 32.5 million (485,000 shares traded). In the retail market 21 million share volumes changed hands in 9600 transactions.Yesterday, the Central Bank announced the US dollar rate. The buying rate at Rs 322.44 and selling rate at Rs 333.43