Banking sector counters see selling pressure

By Hiran H.Senewiratne 

Banking sector stocks/counters at the CSE showed some downward trend  and witnessed some selling pressure yesterday  with the conclusion of the post COVID19 period relief granted to banks by the authorities. This would result in the end of the debt moratorium  and the entire banking sector would have to revert to the pre COVID 19 period, stock market analysts said.

Consequently, banks will have to recover certain loans from the tourism sector related entities, such as hotels, which are going through a major setback with the  shutting down of the major airport due to the pandemic, market sources said.  

Further, Expolanka share prices moved up due to a speculative rally on the company. That pushed its share price up by more than 20 percent or Rs. 2.30. At the commencement of trading its share price was Rs. 11.50 and at the end of the day it moved up by Rs. 13.80. Apart from that, several other companies including, Tokyo Cement, Hayleys Fabric and RIL Properties’   share prices also moved up due to speculation, analysts said. 

However, the market showed some mixed reactions, i.e., the All Share Price Index went up by 65.33 points and S and P SL20 went down by 7.10 points. Turnover stood at Rs. 3.2 billion with three crossings. Those crossings were reported in JKH , where 1.8 million shares crossed for  Rs. 247 million; its share price trading at Rs. 134, CTC 5700 shares crossed for Rs. 53.8 million, per share value being Rs. 945 and Hemas Holdings  300,000 shares crossed for Rs. 22.5 million; its share price trading at Rs. 75.