Election ambiguity and vagueness weighs on stock trading

By Hiran H.Senewiratne

The trading activities on the Colombo Stock Exchange (CSE) commenced at a slow pace and showed a shaky and volatile movement. Thus the indices declined to 160 points at the end of the trading day. Nevertheless, during mid-day, stock trading gained some momentum as assumptions were circulating about more political stability being created through a quicker parliamentary election preceding the presidential election.

Amid those developments both indices moved downwards. All Share Price Index down by 140 points while S and P SL20 down by 41.6 points. Turnover stood at Rs 3.33 billion with six crossings.

Those crossings were reported in JKH, which crossed 2.93 million shares to the tune of Rs 591 million and its share price traded at Rs 202, PGP Glass 5.5 million shares has crossed to the tune of Rs 159 million and its share price4 traded at Rs 29.10, Sampath Bank 523,000 shares crossed to the tune of Rs 41.6 million and its share price traded at Rs 79.50, Commercial Bank 300,000 shares crossed to the tune of Rs 34.8 million and its share price traded at Rs 116, Hemas Holdings 362,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 88.50, and Pan Asian Bank one million shares crossed to the tune of Rs 23.5 million and its share price traded at Rs 23.50

In the retail market tops seven companies that mainly contributed to the turnover were JKH Rs 298 million (1.5 million shares traded0, Sunshine Holdings Rs 118 million (1.8 million shares traded), Browns Investments Rs 116 million (18 million shares traded), Sampath Bank Rs 107 million (1.3 million shares traded), Royal Ceramic Rs 105 million (2.8 million shares traded), Chevron Lubricants Rs 100 million (832,000 shares traded) and HNB Rs 89 million (445,000 shares traded). During the day 110 million share volume changed hands in 18472 transactions.

During the day, the manufacturing sector was the highest contributor to the turnover mainly JKH, PDG Glass and Sunshine Holdings, while the Banking sector was bit active and especially Sampath Bank

Yesterday, the rupee opened weaker at Rs 300.50/301.00 to the US dollar , from Rs 299.00/30 the previous day, dealers said. Bond yields were down.A bond maturing on 15.12.2026 was quoted down at 9.95/10.05 percent from 10.10/30 percent.A bond maturing on 15.09.2027 was quoted down at 10.20/40 percent from 10.50/70 percent.A bond maturing on 15.03.2028 was quoted down at 10.60/65 percent 11.80/95 percent.