Investor confidence fails to improve share market’s attractiveness

CSE trading in the early part of yesterday was positive but such momentum petered out during the latter part of the session because investor confidence has not improved the market’s attractiveness.

The Central Bank’s decision to keep policy rates unchanged has also not created a positive impact on the market. Both indices moved downwards. The All Share Price Index went down by 60.4 points, while the S and P SL20 declined by 10.05 points.

Turnover stood at Rs 1.64 billion with five crossings. Those crossings were reported in HNB, which crossed 173,000 shares to the tune of Rs 240 million; its shares traded at Rs 310, VallibelOne 1 million shares crossed for Rs 58.5 million and its shares traded at 310.

Richard Pieris 1.79 million shares crossed for Rs 46.6 million; its shares traded at Rs 26, JKH 2 million shares crossed for Rs 40.2 million; its shares traded at Rs 20.10 and Sampath Bank 260,000 shares crossed for Rs 30.3 million; its shares traded at Rs 121.25.

In the retail market top six companies that have mainly contributed to the turnover were; CCS Rs 135 million (1.64 million shares traded), Commercial Bank Rs 100 million (682,000 shares traded), CT Land Rs 75 million (three million shares traded), Valibel One Rs 68.7 million (1.2 million shares traded), Sampath Bank Rs 67.5 million (5.50 million shares traded) and HNB Rs 57.5 million (183,000 shares traded). During the day 88.2 million share volumes changed hands in 10803 transactions.

It is said that during the day banking sector performed well, especially HNB, and the manufacturing sector was the second largest contributor to the turnover, mainly with JKG and CCS.

Yesterday, the rupee was quoted at Rs 29.40/49 to the US dollar in the spot market, stronger from Rs 296.55/65 on the previous day, dealers said, while bond yields were steady.

A bond maturing on 15.10.2028 was quoted at 10.00/02 percent, down from 10.00/10 percent.

A bond maturing on 15.09.2029 was quoted at 10.20/30 percent, down from 10.25/35 percent.

A bond maturing on 15.10.2030 was quoted at 10.30/40 percent, down from 10.35/50 percent.

A bond maturing on 15.12.2032 was quoted at 10.55/75 percent, down from 10.65/80 percent.

An auction of Rs. 100,500 million Treasury bills was ongoing.

The Central Bank was quoting a rate of Rs 292.3299 for buying and Rs 300.8497 for selling for US dollar telegraphic transfers; 1.9365 buying and 2.0126 selling for Japanese yen for telegraphic transfers; and Rs 376.7046 buying and Rs 390.8964 selling for sterling pound for telegraphic transfers.

By Hiran H Senewiratne