CBSL’s positive signals add buoyancy to bourse

By Hiran H.Senewiratne

The CSE moved up over 1 per cent in mid-morning trade yesterday, continuing the momentum from the previous day. The main reason for the market to bounce back is because the Central Bank has sent out positive signals on the IMF bailout for Sri Lanka, stock market analysts said.It is said that Clifford Chance and Lazard are inviting those interested for an update on Sri Lanka’s debt restructuring today at 5.30 p.m. local time, market analysts added.

This will be the first open engagement with creditors of Sri Lanka since the appointment of Clifford Chance and Lazard as legal and financial advisors respectively to the government. Up to now they have had individual meetings with bilateral creditors.

Sri Lanka in April suspended servicing of its $ 47 billion external debt held by bilateral and private creditors as well as in International Sovereign Bonds. In August, the Finance Ministry issued its update to creditors on the measures taken to ensure debt sustainability.Amid those developments both indices moved upwards. The All- Share Price Index went up by 87.9 points and S and P SL20 rose by 29.8 points. Turnover stood at Rs 4.1 billion with five crossings.

Those crossings were reported in Expolanka Holdings, which crossed 1.2 million shares to the tune of Rs 273 million, its shares traded at Rs 228, Sunshine Holdings 1.6 million shares crossed to the tune of Rs 72 million, its shares traded at Rs 45, Lankem Development 1.1 million shares crossed for Rs 41.3 million, its shares fetched Rs 35.50, Richard Pieris one million shares crossed for Rs 32.5 million, its share price was Rs 32.50 and Alumax three million shares crossed to the tune of Rs 32.1 million, its shares traded at Rs 10.70.

In the retail market top seven companies that mainly contributed to the turnover were, Lanka IOC Rs 355 million (1.2 million shares traded), ACL Cables Rs 302 million (2.6 million shares traded), ACL Cables Rs 225 million (5.2 million shares traded), Expolanka Holdings Rs 204 million (312,000 shares traded), Lankem Development Rs 182 million (4.9 million shares traded), Browns Investments Rs 179 million (22.6 million shares traded) and Colombo Port Lands Rs 163 million (5.4 million shares traded). During the day 147 million share volumes changed hands in 36000 transactions.

During the day previous day, bull-runners showed some profit- takings and those were mainly bluechip companies.It is said that high net worth and institutional investor participation was noted in Expolanka Holdings, Lanka IOC and CIC Holdings. Mixed interest was observed in ACL Cables, Printcare and Hayleys, while retail interest was noted in Browns Investments, SMB Leasing and Asia Siyaka Commodities. The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), while the sector index gained 0.78 per cent. The share price of Expolanka Holdings increased by Rs. 1.75 (0.78 per cent) to close at Rs. 226.50.

The Capital Goods sector was the second highest contributor to market turnover (due to ACL Cables and Hayleys), while the sector index increased by 0.90 per cent. The share price of ACL Cables moved up by Rs. 8.60 (8.88 per cent) to close at Rs. 105.50. The share price of Hayleys declined by Rs. 2.50 (2.51 per cent) to close at Rs. 97.Yesterday, the Central Bank- announced US dollar buying rate was Rs 359.18 and the selling rate Rs 369.92.

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