Bourse hits positive trend following minister’s reference to govt.-creditors MoU

By Hiran H.Senewiratne

The stock market got into a positive trend yesterday after Minister Bandula Gunawardena’s statement to the media that negotiations with external creditors have come to a conclusion and that a MoU is to be signed with those creditors soon, market analysts said.

Apart from that, the stock market was dominated by institutional buyers due to crossings while more than 50 percent of the turnover came from JKH. Consequently, banking sector counters performed well during the day.

Amid those developments both indices moved upwards. The All Share Price Index went up by 23 points while S and P SL-20 rose by 11 points. Turnover stood at Rs 2.07 billion with eight crossings.

Those crossings were reported in JKH, which crossed 4.1 million shares to the tune of Rs 827 million; its shares traded at Rs 202, Melstacope 1.9 million shares crossed for Rs 161.3 million; its shares traded at Rs 87, Commercial Bank 421,000 shares crossed for Rs 44.5 million; its shares traded at Rs 105.50, NTB 210,000 shares crossed for Rs 28 million; its shares sold at Rs 134, DFCC Bank 270,000 shares crossed for Rs 20.80 million and its shares traded at Rs 77, Galle Face Capital 610,000 shares crossed to the tune of Rs 20 million; its shares fetched Rs 33, Dipped Products 500,000 shares crossed for Rs 20 million; its shares sold at Rs 40 and HNB 100,000 shares crossed for Rs 20 million; its shares traded at Rs 200.

In the retail market, the top seven companies that mainly contributed to the turnover were; JKH Rs 154 million (761,000 shares traded), Dipped Products Rs 116.8 million (2.9 million shares traded), Hayleys Fabrics Rs 60.8 million (1.3 million shares traded), HNB Rs 45 million (225,000 shares traded), Hayleys Rs 40 million (383,000 shares traded), DFCC Rs 35 million (254,000 shares traded) and Melstacope Rs 26 million (303,000 shares traded). During the day 46 million share volumes changed hands in 10151 transactions.

A new IPO was announced by Maharaja Food to raise 25 million shares, while Commercial Bank will form a major debenture issue to raise Rs 20 million.

Yesterday the rupee opened weaker at Rs 305.50/90 to the US dollar, while bond yields were steady, and stocks opened 0.14 percent up, dealers said.

The rupee closed at Rs 304.75/305.40 to the greenback on Wednesday. In the secondary market, yields were broadly steady, dealers said. A bond maturing on 15.12.2026 was quoted at 10.35/60, down from 10.35/75 percent. A bond maturing on 15.09.2029 was quoted at 12.00/15 percent, from 11.95/12.35 percent.