Hopes of successful debt restructuring bring share market stability

By Hiran H.Senewiratne

The stock market bounced back yesterday and is stable as investors are hoping for a positive response on the debt restructuring front from IMF officials in New York over the weekend.

The market performance was positive and stable for the 12th consecutive day. Due to that, both indices moved upwards. The All Share Price Index went up by 108.6 points while S and P SL20 rose by 41.5 points. Turnover stood at Rs 6 billion with nine crossings.

Those crossings were reported in JKH where 25 million shares crossed to the tune of Rs 527 million and its shares traded at Rs 21.10, Melstacorp 1.1 million shares crossed for Rs. 118.8 million; its shares traded at Rs 108, Ceylinco Insurance 34000 shares crossed for Rs 102 million; its shares traded at Rs 3000, LOLC Holdings 100,000 shares crossed for Rs 65 million; its shares traded at Rs 550, Aitken Spence 400,000 shares crossed for Rs 51.2 million; its shares traded at Rs 128, Sampath Bank 412,000 shares crossed for Rs 41.6 million; its shares sold at Rs 101, Hemas Holdings 247,000 shares crossed to the tune of Rs 22.7 million; its shares sold at Rs 92, Ambeon Capital 1 million shares crossed to the tune of Rs 22.4 million; its shares traded at Rs 22.40, and Access Engineering 737,000 shares crossed for Rs 21.9 million; its shares fetched Rs 30.

In the retail market, the top companies that mainly contributed to the turnover were; JKH Rs 508 million (24 million shares traded), LOLC Holdings Rs 345 million (637,000 shares traded), PickMe Rs 292 million (4.5 million shares traded), Dialog Axiata Rs 255 million (23.7 million shares traded), Vallibel One Rs 166 million (2.8 million shares traded) and Sampath Bank Rs 164 million (1.6 million shares traded). During the day 249 million share volumes changed hands in 30200 transactions.

It is said that the manufacturing sector was the main contributor to the market, especially because of JKH, which contributed one sixth of the turnover. Like the previous day, LOLC Group companies were also active. .

Yesterday, the rupee opened stronger at Rs 290.25/30 to the US dollar from Rs 290.30/35 to the US dollar on the previous day, dealers said, while bond yields were steady.

A bond maturing on 15.10.2027 was quoted at 9.90/10.00 percent, from 9.90/10.05 percent. A bond maturing on 15.02.2028 was quoted at 10.35/45 percent. A bond maturing on 15.09.2029 was quoted at 10.85/92 percent, from 10.80/95 percent. A central bank auction of Rs. 206,000 million Treasury bills was ongoing. An auction of 132,500 million Treasury Bonds is to be held on Thursday.