Weak sentiment at CSE amid lag effects of macroeconomic outcomes

Trading activities at the Colombo Stock Exchange (CSE) turned negative yesterday as market players hadn’t still felt any favourable outcomes from the macroeconomic front as anticipated, according to market analysts.As a result, CSE couldn’t sustain its momentum in both indices and foreign investors turned their eyes on blue chip counters to take the maximum benefit from future prospects, they said.

Amid those developments both indices took a downward turn. The All Share Price Index was down by 15.65 points and S and P SL 20 down by 4.6 points.

Turnover stood at Rs 729 million with three crossings. Those crossings were reported in Dialog Axiata 3.5 million shares crossed to the tune of Rs 33.3 million and it’s share price traded at Rs 9.80, Sierra Cables two million shares crossed to the tune of Rs 21 million and its share price traded at Rs 10.50 and CTC 25000 shares crossed to the tune of Rs 20.5 million and it’s share price traded at Rs 800.

In the retail market top seven companies that mainly contributed to the turnover were HNB Rs 261 million (2.1 million shares traded), Watawala Plantations Rs 83.7 million (1.2 million shares traded), Sampath Bank Rs 35.1million (902,000 shares traded), Aitken Spence Hotels Rs 19.5 million (343,000 shares traded), Lanka IOC Rs 16.3 million (122,000 shares traded ), Browns Investments Rs 16.3 million (3.2 million shares traded) and Keells Hotels Rs 12.9 million (760,000 shares traded). During the day 25.9 million shares volumes changed hands in 8000 transactions.

During the day capital goods sector was the top contributor to the turnover due to JKH . The Food, Beverage and Tobacco was the second highest contributor to the market turnover due Watawala Plantations and Sunshine Holdings.

Meanwhile, the Central Bank announced that the exchange rate had further appreciated against the US dollar. Hence the US dollar buying rate was Rs. 295.62 and selling rate was Rs. 308.54 yesterday.