Connect with us

News

Bull run on CSE ends, but market remains heated

Published

on

The unprecedented bull run on the Colombo Stock Exchange ended at the close of trading on Friday with the All Share Price Index (ASPI) that hade been galloping for several previous days closing 143.94 points (1.53%) down at 8,668.07 while S&P SL 20 reflecting more liquid (and possibly stronger shares) gaining 8.85 points (0.25%) to close at 3,514,8.

Brokers and analysts said that that the correction process appears to have begun although both indices remain sharply up from levels posted until what one broker called “the crazy upward momentum” began several days ago.

Among the shares that declined Friday were hot counters like those belonging to LOLC Holdings, the Ishara Nanayakkara-controlled conglomerate and several Hayleys Group companies controlled by Mr. Dhammika Perera including the parent and the bigger subsidiaries like Haycarb and Dipped Products.

LOLC was down Rs. 8.50 to Rs. 512.75 on approx. four million shares done at between Rs. 498.25 and Rs. 574 in 3,245 trades when the market closed for the week on Friday. Likewise, the three Hayleys biggies, Hayleys, Haycarb and Dipped Products where 10 for one share splits (each existing share will be subdivided into 10) are pending also lost steam.

Hayleys was down Rs. 30.25 to Rs. 772 on approx. 0.3 million shares done in 592 trades between Rs. 755.50 and Rs. 815.Dipped Products declined Rs. 39.25 to Rs. 703 on approx. 0.5 million shares done between Rs. 680 – 760 on 1,676 trades while Haycarb lost Rs. 85.25 to close at Rs. 1,196 on 0.13 million shares done between 1,165 -1,280 in 662 trades.

The CSE has been posting turnovers running into billions hitting an all time high in the peak of the bull run. A feature of the red hot market was day trading by small investors (as well as some biggies) who took advantage of the upward momentum buying and selling on the same day with no cash outlay and paying only once and not twice on brokerage on two transactions.

“All they had to do was collect their profits at the end of the day,” one broker said. “It was very hard for us because we were getting so many telephone calls and could not offer serious advice because we had no sense of market direction.”

They were not willing to hazard a guess on what will happen when trading resumes on Monday given the way things went on the last several days, but most expected the correction of the ASPI which began on Friday to continue.

“Look at this one example,” one market player said. “Central Finance (CF) closed at Rs. 116.50 on Friday, up Rs. 3.50 on 1.26 million shares done between Rs. 115-135 in 583 trades. DFCC Bank lost 40 cents to close at Rs. 74.10 on 0.77 million shares done between Rs. 73.10 and Rs. 78 in 296 trades. DFCC’s net assets value is way ahead of CF. It makes no sense.”



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

SLPP MP Namal Rajapaksa arrested by CIABOC

Published

on

By

(File pic)

Sri Lanka Podujana Peramuna (SLPP)  Member of Parliament Namal Rajapaksa has been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Namal Rajapaksa had been  summoned by CIABOC  to provide a statement in connection with investigations into the controversial Airbus deal. He was subsequently arrested by CIABOC after recording his statement for over 5 hours.

Continue Reading

Latest News

Sun directly overhead Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon today (04)

Published

on

By

The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (04) are Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon.

Continue Reading

News

Norochcholai digs into dwindling coal stocks, two units slash generation

Published

on

Plant’s output cut from 270 MW to 140 MW amidst dwindling stocks; energy analysts warn system remains “at a razor’s edge”

By Ifham Nizam

The Norochcholai coal-fired power plant is now digging into the last dredges of its coal stock, with two operational units forced to slash generation from around 270 MW to just 140 MW on Sunday as the plant ran critically short of fuel, according to independent energy analysts and sources familiar with the National System Operator (NSO).

The sudden reduction of approximately 130 MW in coal generation has once again exposed the fragile state of the country’s power supply arrangements, with the plant understood to have coal stocks sufficient only until Friday night.

“This is not how a coal plant is expected to operate. They are digging up the last dredges of coal from the plant,” an independent energy analyst told The Island.

The analyst questioned why the units had been allowed to reach this stage without earlier intervention, arguing that at least one unit should have been deloaded around 10 days ago to conserve the remaining coal.

Had that been done, the analyst said, the country could also have reduced its dependence on more expensive diesel-fired generation during the period when

coal stocks were being conserved.

The latest NSO generation figures highlight the continuing pressure on the system.

Around 7 p.m. on Sunday, when the night peak was reached, total demand stood at 2,552.7 MW. Coal contributed only 282 MW, while major hydro accounted for 1,215.8 MW and thermal-oil generation for 791.9 MW.

The night peak of 2,552.7 MW was substantially higher than the daytime peak of 2,246 MW, according to the NSO Generation Summary for August 30.

The most immediate concern is the remaining coal stock at Norochcholai.

Sources said the plant has coal only to Friday night, making the timing of the next shipment critical.

The first shipment under the emergency arrangement is expected to arrive on Friday, September 4, but the coal unloading will have to begin on the same day if

the power plant is to continue operating without further significant deloading.

That creates another potential vulnerability, with rough sea conditions posing an additional challenge to unloading operations.

Energy sector sources said that even the arrival of the September 4 shipment would not completely eliminate the danger.

The next shipment under the new coal tender would need to commence unloading around September 15. Any significant delay beyond that could again force the Norochcholai units to operate at reduced output.

“We are still at a razor’s edge”

The independent energy analyst said the situation should not be viewed merely as a question of whether a particular vessel arrives on time.

The situation also means that any further reduction in coal generation could have a direct impact on the use of oil-fired power generation, potentially increasing the cost of electricity generation.

The latest NSO figures already show the important role being played by thermal-oil generation during the evening peak, when demand rises sharply.

The analyst questioned the rationale behind allowing the coal units to continue operating at higher loading until stocks reached critically low levels instead of taking measures earlier to stretch the available inventory.

Continue Reading

Trending