WB report on poverty seen as dampening bourse

By Hiran H. Senewiratne

CSE trading was sluggish throughout yesterday and the lowest turnover level for the year was recorded. Both indices moved downwards, market analysts said.

Investors are still adopting a- wait- and -see approach due to certain reports by the World Bank revealing that Sri Lanka’s poverty level would increase by 25 per cent this year.

Further, corporate results released by 25 companies up to now show performances that are below expectations. Besides investors are seeking further clarity on debt restructuring and optimization, analysts said.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 13 points and S and P SL20 declined by 16.8 points. Turnover stood at Rs 415 million without any crossings.

In the retail market top seven companies that mainly contributed to the turnover were, Lanka IOC Rs 170 million (1.1 million shares traded), Browns Investments Rs 21.5 million (3.96 million shares traded), Dialog Axiata Rs 13.2 million (1.2 million shares traded), Sampath Bank Rs 11.5 million (224,000 shares traded), HNB Rs 10.3 million (88,000 shares traded), Royal Ceramic Rs 10 million (371,000 shares traded) and Hayleys Rs 8.1 million (120,000 shares traded).

It is said high net worth and institutional investor participation was noted in Expolanka Holdings and Sampath Bank. Mixed interest was observed in HNB and National Development Bank, while retail interest was noted in Browns Investments, Tokyo Cement Company and Aitken Spence Hotel Holdings.

The banking sector was the top contributor to the market turnover (due to Sampath Bank, National Development Bank and Hatton National Bank), while the sector index gained 0.36%. The share price of Sampath Bank gained 70 cents to reach Rs. 51.40. The share price of National Development Bank moved up by 10 cents to reach Rs. 43.20. The share price of Hatton National Bank recorded a loss of Rs. 2.75 to dip to Rs. 115.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) while the sector index increased by 1.76 per cent. The share price of Expolanka Holdings increased by Rs. 2.75 to Rs. 158.75.

Yesterday, bond yields were slightly up during mid-day trade as results of a bill auction were awaited, while the rupee was trading at 317.30/50 against the US dollar in the spot market, dealers said.

A bond maturing on 01.09.2027 was quoted at 28.40/60 per cent, slightly up from 28.30/50 per cent at yesterday’s close.

A bond maturing on 15.05.2026 was quoted at 30.00/50 per cent on Wednesday, steady from 30.00/25 per cent at last close.