Deputy minister’s statement on taxes helps enliven stock market

By Hiran H. Senewiratne

The stock market yesterday set off on a sluggish note but later began to recover following Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe’s statement that there is no possibility of reducing taxes within this year’s budget.

Abeysinghe said at an event that the government is required to collect 15.1 percent of the Gross Domestic Product (GDP) in taxes in accordance with agreements reached with the IMF.

However, the stock market incurred losses last Monday and Tuesday with 390 negative points in the All Share Price Index. But Abeysinghe’s statement and the withdrawal of the Adani Group from the Mannar renewable energy project have created some impetus for the local energy sector companies. As a result the market was able to recover with 150 negative points, market analysts said.

Amid those developments the All- Share Price Index went up by 233 points while S and P SL20 rose by 54.14 points. Turnover stood at Rs 3.59 billion with six crossings.

Those crossings were reported in Ambeon Capital, where 17.7 million shares crossed to the tune of Rs 505 million; its shares traded at Rs 28.50, Print Care 5.4 million shares crossed for Rs 340 million; its shares traded at Rs 62.50, Ceylinco Insurance 43000 shares crossed for Rs 139 million; its shares traded at Rs 3250, JKH two million shares crossed for Rs 44.8 million; its shares traded at Rs 22.50, HNB 100,000 shares crossed to the tune of Rs 33 million; its shares sold at Rs 330 and Hayleys 200,000 shares crossed to the tune of Rs 26,8 million; its shares fetched Rs 134.

In the retail market six top companies that mainly contributed to the turnover were; Ambeon Capital Rs 206 million (1.4 million shares traded), JKH Rs 172 million (7.7 million shares traded), HNB Rs 132 million (400,000 shares traded), Sierra Cables Rs 117 million (7.1 million shares traded), CIC (Non- Voting) Rs 111 million (1.3 million shares traded) and Sampath Bank 95 million (800,000 shares traded). During the day, 111 million shares changed hands in 18218 transactions.

It is said that financial and banking sector counters performed well, especially Ambeon Capital, while industrial sectors counters, especially JKH Print Care and Sierra Cables, performed well during the day.

Yesterday the rupee was quoted at Rs 296.70/297.00 to the US dollar in the spot market, broadly flat from Tuesday’s close of 296.80/297.00, dealers said, while bond yields were slightly down.

A bond maturing on 15.12.2026 was quoted at 9.00/10 percent, down from 9.03/10 percent. A bond maturing on 01.05.2027 was quoted at 9.45/50 percent. A bond maturing on 15.02.2028 was quoted at 10.07/12 percent, down from 10.10/15 percent. A bond maturing on 15.10.2028 was quoted at 10.38/40 percent. A bond maturing on 15.09.2029 was quoted at 10.80/90 percent, down from 10.85/95 percent. A bond maturing on 15.10.2030 was quoted at 11.25/30 percent, up from 11.23/28 percent. An auction of Rs 67,500 million in Treasury Bonds was ongoing.