Bourse continues on sluggish course as investor participation slumps

By Hiran H.Senewiratne

Stock market activities were extremely dull yesterday and investor participation had also come down significantly due to the lack of clarity in the country’s future economic trajectory, market analysts said.

Amid those developments both indices moved downwards. The All Share Price Index went down by 114 points, while the S and P SL20 declined by 29.6 points. Turnover stood at Rs 824 million sans any crossings.

In the retail market top seven companies that mainly contributed to the turnover were; Sampath Bank Rs 55.5 million (461,000 shares traded), NTB Rs 53.1 million (267,000 shares traded), Union Assurance Rs 47.1 million (708,000 shares traded), HNB Rs 34.9 million (111,000 shares traded), Browns Investments Rs 34 million (4.3 million shares traded), CIC Holdings Rs 26.5 million (229,000 shares traded) and Central Finance Rs 26.4 million (134,000 shares traded). During the day 29.5 million share volumes changed hands in 10000 transactions.

It is said that the banking sector led the market and was the main contributor for the turnover, while the manufacturing sector, mainly CIC Holdings, was the second largest contributor to the market.

Yesterday the rupee was quoted at Rs 295.30/55 to the US dollar in the spot market, from 295.40/50 Friday, dealers said, while bond yields were broadly steady.

A bond maturing on 15.09.2027 was quoted at 9.42/47 percent, down from 9.43/48 percent. A bond maturing on 15.03.2028 was quoted at 10.00/05 percent. A bond maturing on 01.07.2028 was quoted at 10.20/28 percent, down from 10.20/25 percent. A bond maturing on 15.10.2028 was quoted at 10.36/40 percent.

The Central Bank announced a Treasury bill auction of Rs 165.5 billion on Tuesday, and a Treasury bond auction of Rs 75 billion on Wednesday.