Share market investors discouraged by ongoing trade union action

By Hiran H. Senewiratne

CSE trading had improved but was highly volatile yesterday due to the negative impact of some global economic developments. Likewise, share market investors are discouraged by ongoing local trade union action in the country, stock market analysts said.

Consequently, the market ended with mixed reactions amid anticipation that the state’s discussions with the IMF would conclude after March 20, 2023, an analyst added.

“The overall sentiment is positive but shows some mixed reactions. The market is in recovery mode and profit- taking is coming to an end along with renewed investor interest, this analyst explained.

Amid those developments, the All- Share Price Index went up by 59.6 points and S and P SL20 declined by 4.28 points. Turnover stood at Rs 1.45 billion with one crossing. The crossing was reported in Hayleys, which crossed 839,000 shares to the tune of Rs 65.4 million; its shares traded at Rs 78.

In the retail market top seven companies that mainly contributed to the turnover were; HNB Rs 213 million (1.6 million shares traded), Lanka IOC Rs 106.4 million (583,000 shares traded), JKH Rs 82.7 million (590,000 shares traded), ACL Cables Rs 74 million (865,000 shares traded), Softlogic Capital Rs 72.6 million (5.9 million shares traded), Piramal Glass Rs 56.1 million (2.9 million shares traded) and Expolanka Holdings Rs 42.3 million (285,000 shares traded). During the day, 52 million share volumes changed hands in 17000 transactions.

Financial indexes are seeing interest yet again due to the IMF approaching Sri Lanka, as bilateral creditors have provided their assurances and Sri Lanka has implemented IMF backed policies for a US $ 2.9 billion loan, an analyst said.

However, Power and Energy counters have been losing ever since Education Minister Susil Premajayantha signaled possible price cuts in fuel and electricity as low fuel demands have been seen, resulting in investors speculating on lower revenues and returns, pushing the index down.

“The Minister of Energy said by June the tariff will be revised again. We have to be patient. We have not become Venezuela or Argentina. We have not become a Pakistan. The inflation is coming down. The rupee that was at 362 against the USD is now at 307. Now it has further come down, Premajayantha said.

It is said that mixed interest was observed in Lanka IOC, Expolanka Holdings and Sampath Bank, while retail interest was noted in SMB Leasing nonvoting, Industrial Asphalts and Softlogic Capital.

The Utilities sector was the top contributor to the market turnover (due to Vidullanka), while the sector index gained 0.33 per cent. The share price of Vidullanka increased by 10 cents to Rs. 6.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp), while the sector index decreased by 0.75 per cent. The share price of Melstacorp closed flat at Rs. 58.

Yesterday the rupee opened around Rs 325/330 to the US dollar in the spot market and was quoted at around Rs 329/330 in late morning trade, dealers said. The rupee closed around Rs 320/328 to the US dollar Monday.

Sri Lanka’s rupee has gained from around Rs 360 to the US dollar after the guidance peg was relaxed and appreciated to below 320 as banks and dollar holders sold down their holdings.

, Business, ,

Post a Comment

Previous Post Next Post