Bourse traverses positive trajectory following President’s second tranche comments

By Hiran.H Senewiratne

President Ranil Wickremesinghe’s positive comment on the IMF’s second tranche at a forum yesterday propelled the bourse on to positive trajectory. Positive sentiment was generated among local and foreign investors, stock market analysts said.

However, the impending VAT increase spread some gloom in the market. Parliament approved a 3 percent increase in VAT from January 1 and decided to reduce exemptions to the tax as the country is struggling to meet the revenue target agreed upon with the IMF in return for a US $3 billion loan.

Amid those developments both indices moved upwards. The All- Share Price Index went up by 23.61 points and S and P SL20 rose by 9.3 points. Turnover stood at Rs 1.02 billion with four crossings. Those crossings were reported in Expolanka Holdings, which crossed 274,000 shares to the tune of Rs 41.1 million; its shares traded at Rs 150, HNB 150,000 shares crossed for Rs 25.35 million and its shares traded at Rs 169 and Melstacope 260,000 shares crossed for Rs 22.1 million; its shares sold at Rs 85 and Sunshine Holdings 400,000 shares crossed for Rs 21.6 million; its shares fetched Rs 54.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 88.4 million (600,000 shares traded), Lanka IOC Rs 60.1 million (537,000 shares traded), Melstacope Rs 51.9 million (591,000 shares traded), Alumex Rs 41.12 million (4.9 million shares traded), Sunshine Holdings Rs 39.4 million (731,000 shares traded) and Pan Asia Bank Rs 38.4 million (361,000 shares traded). During the day 32.1 million share volumes changed hands in 9600 transactions.

It is said high net worth and institutional investor participation was noted in JKH, HNB, and Richard Pieris & Company. Mixed interest was observed in Expolanka Holdings, Sampath Bank and Tokyo Cement Company, while retail interest was noted in UB Finance Company, LOLC Finance and Amana Bank.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank), while the sector index gained 0.49 percent. The share price of Sampath Bank gained Rs. 1.10 to reach Rs. 73.40.The Transportation sector was the second highest contributor to the market turnover.

United Motors Lanka PLC (UML) announced a share purchase agreement between the company and TRF Singapore Pte Ltd to acquire a 100 percent stake in Dutch Lanka Trailer Manufacturers (DLT) Limited along with Dutch Lanka Engineering (Pvt) Limited, a subsidiary of DLT, in October.

“We hereby confirm that the transaction was concluded today, for a total consideration of LKR700 million, Chanaka Yatawara, Group CEO/Director of United Motors Lanka said in a statement.

Yesterday, the rupee opened at Rs 327.10/30 to the US dollar, after closing at Rs 327.00/30 the previous day, dealers said.

A bond maturing on 01.08.2026 was quoted at 14.05/10 percent from 14.05/15 percent. A bond maturing on 15.01.2027 was quoted at 14.05/15 percent from 14.00/10 percent. A bond maturing on 01.07.2028 was quoted at 14.20/30 percent from 14.20/30 percent.