Bourse’s buoyancy continues as buying interest in shares returns

By Hiran H.Senewiratne

The CSE’s buoyancy continued yesterday with buying interest returning on improved sentiment and apparent waning of concerns over new taxation. It is said that there was more than six-week low but bargain hunters returned to the market and bought beaten down heavyweight shares, stock market analysts said.Market bounced back on technical grounds after experiencing a downward trend for a few weeks, but bargain hunters came up front to purchase index- weighted stocks. However, many analysts said the market will be volatile.

Amid those developments both indices moved upwards. The All Share Price Index went up by 295 points and S and P SL20 rose by 222 points. Turnover stood at Rs 2.5 billion with three crossings. Those crossings were reported in JKH, which crossed 1.4 million shares to the tune of Rs 181 million and its shares traded at Rs 130, CIC Holdings’ 299,000 shares crossed to the tune of Rs 47.4 million, its shares traded at Rs 95 and Commercial Bank 519,000 shares crossed to the tune of Rs 26.5 million, its shares traded at Rs 51.

In the retail market top seven companies that mainly contributed to the turnover were Lanka IOC Rs 536 million (2.3 million shares traded), Expolanka Holdings Rs 252 million (1.5 million shares traded), CIC (Non -Voting) Rs 190 million (2.7 million shares traded), CIC (Voting) Rs 166 million (1.8 million shares traded), ACL Cables Rs 120 million (1.2 million shares traded), JKH Rs 56.2 million (432,000 shares traded), and Browns Investments Rs 51.6 million (7.9 million shares traded). During the day 75.7 million share volumes changed hands in 26000 transactions.

The market saw net foreign inflow of Rs 31 million on the previous day. The inflow so far this year is Rs 16.4 billion after Rs 17.8 billion of net offshore buying in the last 41 consecutive sessions amid positive sentiment over an IMF deal.

It is said that high net worth and institutional investor participation was noted in JKH, CIC Holdings (voting and non-voting) and Royal Ceramics. Mixed interest was observed in Lanka IOC, Expolanka Holdings and ACL Cables, while retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing.

Energy sector was the top contributor to the market turnover (due to Lanka IOC), while the sector index gained 0.92 per cent. The share price of Lanka IOC increased by Rs. 1.50 (0.71 per cent) to close at Rs. 213.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables and JKH) while the sector index increased by 1.95 per cent. The share price of ACL Cables moved up by Rs. 6.70 (7.69 per cent) to close at Rs. 93.80. The share price of John Keells Holdings closed flat at Rs. 128.50.Yesterday the Central Bank- announced US dollar buying rate was Rs 359.69 and selling rate Rs 370.42.

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