CTC becomes lead contributor to CSE turnover; financial sector counters active

By Hiran H.Senewiratne

CTC, being the main gainer from the recent corporate tax cuts,  became the lead contributor to the CSE's turnover yesterday. Apart from that, financial sector counters  were actively traded in the CSE because of the removal of the debt repayment levy  and slashing of corporate tax from 28 percent to 24 percent, stock market analysts said.

 Although both indices were positive, ie, the All Share Price Index up by 43.08 points and S and P SL20 by 27.61 points, the market did not gain full potential, analysts said.    Fitch Ratings has revised the outlook on People’s Bank (PB), Commercial Bank (CB) and Serendib Finance Limited to negative from stable, after a similar move on the Sri Lankan sovereign. It was not reflected in the market activities, especially in the banking sector due to positive tax cuts, market sources said.

Day's turnover stood at Rs. 604.5 million with two crossings from two major banks. Those are HNB, which crossed 734,000 shares to the tune of Rs. 118.9 million, per share value Rs. 162 and Sampath Bank 392,000 shares crossed for Rs. 64.4 million, per share value Rs. 162.20.

In the retail market companies that mainly contributed to the day's turnover were; CTC Rs. 64.3 million (58,400 shares traded), HNB Rs. 61.6 million (378,000 shares traded), Chevron Lubricants  Rs. 52.6 million (749,000 shares traded), Sampath Bank Rs. 40.9 million (250,000 shares traded) and LOLC Rs. 15.5 million (98,000 shares traded). During the day 13.3 million share volumes changed hands in 4394 transactions. First Capital Treasuries, the Primary Dealer arm and a subsidiary of First Capital Holdings, has announced that it intends to issue listed, rated, subordinated, unsecured, redeemable debentures with a principal value of Rs.  750 million maturing in five years.

Following interest payment options will be payable semi-annually; Type A – 12.75 percent  p.a. (AER of 13.16 percent  p.a.) and Type B – Weekly AWPLR + 2.00 percent  p.a. The issue will be open on January 27.

First Capital Treasuries is the first standalone primary dealer licensed and appointed by the Central Bank to deal exclusively in government securities and the company currently stands as the leading standalone primary dealer, having a capital base in excess of Rs. 3 billion.

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