Treasury Bill auction results negatively impact CSE trading

By Hiran H. Senewiratne

The CSE’s business sentiment was impaired yesterday following the Central Bank raising Rs 16 billion out of a required Rs 75 billion via Treasury Bills at a weekly auction, which amounted to just 22 per cent of the total issued on the previous day. Besides, President Ranil Wickremesinghe’s public statement on the proposed Inland Revenue Act also affected such sentiment, stock market analysts said.

Further, second quarter corporate earnings are due to be released soon but some investors are worried because the first few months of the second quarter witnessed some negative impact on the economy due to the fuel crisis, market analysts said.

Shares fell in mid-day trade, dragged down by index-heavy shares bucking the previous day’s trend. Both indices moved downwards. The All- Share Price Index went down by 150 points and S and P SL20 was 60.5 points down. Turnover stood at Rs 1.49 billion with a single crossing. The crossing was reported in Commercial Bank, which crossed seven million shares to the tune of Rs 351 million, its shares traded at Rs 50.

In the retail market top seven companies that mainly contributed to the turnover were, Lanka IOC Rs 240 million (1.2 million shares traded), Expolanka Holdings Rs 145 million (974,000 shares traded), CIC Holdings (non- voting) Rs 71.6 million (one million shares traded), Lanka Wall Tiles Rs 62.6 million (885,000 shares traded), Agta PLC Rs 61.6 million (3.1 million shares traded), Commercial Bank Rs 51.2 million (one million shares traded) and JKH Rs 44.3 million (340,000 shares traded). During the day 57.3 million share volumes changed hands in 15000 transactions.Yesterday, the Central Bank- announced US dollar buying rate was Rs 360.59 and the selling rate Rs 371.11.