Tourism-based shares driving CSE ahead of peak season

By Hiran H.Senewiratne

The stock market edged- up in mid-day trade yesterday though at a slow pace. Consumer services on the tourism side are driving the market, market analysts said.The market is acting on tourism- based shares ahead of tourism’s peak season. The market is preparing itself and acting in advance which is pushing the investor sentiment, these analysts explained.

The banking industry has recovered the points it lost and this is occurring subsequent to the IMF approving the loan to crisis- hit Sri Lanka. During the IMF approval process the overall banking industry lost 300 points, banking sources said.

“This interest for the banking sector is likely to be short lived. The index will build- up until debt restructuring negotiations are concluded, market sources added.

Amid these developments both indices moved upwards. The All- Share Price Index went up by 23.4 points and S and P SL20 rose by 7.8 points. Turnover stood at Rs 1.9 billion with two crossings. Those crossings were reported in CTC, which crossed 868,000 shares to the tune of Rs 555 million; its shares traded at Rs 640 and Sampath Bank 2.5 million shares crossed to the tune of Rs 130 million, its shares trading at Rs 52.

In the retail market top seven companies that mainly contributed to the turnover were; HNB Rs 161 million (1.2 million shares traded), CTC Rs 86.7 million (135,000 shares traded), SLT Rs 86.4 million (772,000 shares traded), Sampath Bank Rs 66.8 million (1.2 million shares traded), Hayleys Rs 59.9 million (802,000 shares traded), Melstacorp Rs 58.8 million (one million shares traded) and ACL Cables Rs 47.7 million (503,000 shares traded). During the day 54 million share volumes changed hands in 17000 transactions.

It is said mixed interest was observed in SLT, Hayleys and Lanka IOC, while retail interest was noted in SMB Leasing nonvoting, LOLC Finance and Browns Investments.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Agalawatte Plantations and CTC) while the sector index lost 0.44 per cent.

The share price of Agalawatte Plantations increased by 40 cents to Rs. 31.90. The share price of CTC lost Rs. 15.25 to Rs. 642.75.The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) while the sector index decreased by 0.50 per cent. The share price of Hayleys recorded a gain of 10 cents to reach Rs. 79.70.Yesterday the Central Bank’s US dollar buying rate was Rs 314.74 and selling rate Rs 331.37.