Budget is at variance with IMF claim plunges bourse into negativity

By Hiran H.Senewiratne

Allegations in some sections of the media that the 2024 budget is not on par with IMF targets, plunged some share market investors into a degree of pessimism yesterday, market analysts said.

Apart from that, these sections pointed out that Zambia, which also has a debt burden similar to that of Sri Lanka, had successfully concluded its negotiations. They reported that there is a clear absence of equal treatment for debt burden countries, market analysts said. Accordingly, Investors remain cautious ahead of the IMF second tranche announcement, analysts added.

Amid those developments both indices moved downward. All Share Price Index went down by 43.8 points and S and P SL20 declined by 5.98 points. Turnover stood at Rs 579 million with two crossings.

Those crossings were reported in Melstacope, which crossed 950,000 shares to the tune of Rs 73.6 million; its shares traded at Rs 77.50 and Sampath Bank 1 million shares crossed to the tune of Rs 67 million.

In the retail market top seven companies that mainly contributed to the turnover were; Sampath Bank Rs 65.4 million (976,000 shares traded), Expolanka Holdings Rs 47.5 million (468,000 shares traded), HNB Rs 27.7 million (167,000 shares traded), Colombo Fort Lanka Rs 25.8 million (952,000 shares traded), Commercial Bank Rs 25.6 million (300,000 shares traded), NTB Rs 13.8 million (137,000 shares traded) and Melsacope Rs 13 million (168,000 shares traded). During the day 19.82 million share volumes changed hands in 6000 transactions.

Meanwhile, Cargills Bank had obtained approval from the CSE to go for an Initial Public Offering (IPO) to raise Rs 62.5 million and its share price would be Rs 8. IPO will begins on December 14. The purpose of the IPO is to focus on major expansions and other development activities.

Yesterday, the rupee opened at Rs 328.50/90 to the US dollar, from Rs 328.60/80 on the previous day, dealers said. Bond yields were stable.

A bond maturing on 01.06.2025 was quoted stable at 13.80/14.10 percent. A bond maturing on 01.08.2026 was quoted at 14.20/35 percent from 14.20/40 percent. A bond maturing on 15.01.2027 was quoted at 14.30.40 percent from 14.35/45 percent. A bond maturing on 01.07.2028 was quoted stable at 14.55/65 percent.