Successful completion of Zambian debt restructuring exercise has positive impact on SL

By Hiram H. Senewiratne

CSE trading activities bounced back yesterday because local and foreign investor sentiment improved due to some positive external and internal factors, market analysts said.

The market lost 325 index points until the previous day. However, investor sentiment improved when Zambia successfully completed its debt restructuring exercise, which was quite similar to the Sri Lankan scenario. Owing to that effect, the Sri Lankan stock market and investors reacted in a positive manner, analysts said.

Further, the government’s decision to extend the Lanka IOC licence by 20 more years, moved its share price up by 10 percent. Its shares appreciated to Rs 103.50 from Rs 95.20, which was a Rs 8.80 increase per share, market analysts said. The Union Bank share price also appreciated by 2.9 percent after the announcement of the acquisition of the Bank by a Nepal business magnate, analysts added.

Amid of those positive developments both indices moved upward. The All- Share Price Index went up by 161.93 points and S and P SL20 rose by 70 points.

Turnover stood at Rs 659 million without any crossings. In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 115 million (600,000 shares traded), First Capital Holdings Rs 50.2 million ( 1.5 million shares traded), Expolanka Holdings Rs 40.5 million (314,000 shares traded), Capital Alliance Rs 38.1 million (732,000 shares traded), Hayley’s Fabrics Rs 37 million (813,000 shares traded) Lanka IOC Rs 29.5 million (299,000 shares traded) and First Capital Treasuries Rs 22.4 million (834,000 shares traded). During the day 28.2 million share volumes changed hands in 10000 transactions.

Yesterday, the US dollar buying rate was Rs 321.54 and the selling rate Rs 332.01.