Up and down trend at CSE; mixed reactions to Road Map

By Hiran H.Senewiratne

CSE gathered more momentum yesterday with the more active S&P SL20 Index reaching an all-time high the previous day. Local investors remained bullish in the early session yesterday but the market showed mixed reactions after Central Bank Governor Ajith Nivard Cabraal unveiled the ‘Six-Month Road Map for Ensuring Macroeconomic and Financial System Stability. ‘

Yesterday the stock market was driven by certain contents of the Road Map, which highlighted improving and promoting the local export oriented sector, consolidation of financial institutions and buy back plans on international sovereign bonds if they do not fetch the correct amount in 2022.

With those developments, the CSE began with the bullish buying trend but during the latter part of the day the bourse witnessed some profit takings. Both indices showed mixed reactions. All Share Price Index was down by 17.6 points and S and P SL20 up by 6.10 points. Turnover stood at Rs. 5.3 billion with four crossings. Those crossings were reported in TJ Lanka, where 8.3 million shares crossed for Rs. 376 million, its shares traded at Rs. 45, Expolanka 600,000 shares crossed for Rs. 121.2 million, its shares traded at Rs. 202, Aitkens Spence 500,000 shares crossed for Rs. 41.7 million and its shares traded at Rs. 83.50 and HNB 150,000 shares crossed for Rs. 21.3 million, its shares traded at Rs. 142.

In the retail market, five companies that mainly contributed to the turnover were; Expolanka Holdings Rs. 937 million (4.7 million shares traded), JKH Rs. 475 million (three million shares traded), TJLanka Rs. 364 million (eight million shares traded), EML Consultants Rs. 307 million (21.9 million shares traded) and Browns Investments Rs. 277 million (27 million shares traded). During the day 519 million share volumes changed hands in 43000 share transactions.

It is said high net worth and institutional investor participation was noted in Expolanka Holdings, Brown and Company and JKH. Mixed interest was observed in LOLC Holdings, Teejay Lanka and Royal Ceramics, while retail interest was noted in Browns Investments, Marawila Resorts and Ambeon Capital. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

Separately, Kelani Valley Plantations and Hayleys Fibre announced their interim dividends of 70 cents and one rupee per share respectively.