Macroeconomic factors trigger bullish trend in bourse

By Hiran H.Senewiratne

The stock market was extremely bullish yesterday as three macroeconomic pillars, namely, the exchange rate, market interest rate and inflation are proving conducive to share market development, market analysts opined.

Both indices moved upwards. The All Share Price Index went up by 128.88 points while S and P SL20 rose by 49.65 points.

Turnover stood at Rs 4.1 billion with five crossings. Those crossings were reported in Hayleys, which crossed 3.8 million shares to the tune of Rs 317 million; its shares traded at Rs 83, JKH1 million shares crossed for Rs 218 million and its shares sold at Rs 218.50, People’s Leasing and Finance 9 million shares crossed for Rs 109.8 million; its shares traded at Rs 12.20, CCS 1 million shares crossed for Rs 57 million and its shares sold at Rs 57 and Hemas Holdings 400,000 shares crossed to the tune of Rs 34.4 million; its shares fetched Rs 86.

In the retail market top seven companies that mainly contributed to the turnover were; Browns Investments Rs 355 million (54.6 million shares traded), Hemas Holdings Rs 236 million (2.7 million shares traded), Lanka IOC Rs 236 million (1.8 million shares traded), Hayleys Rs 191 million (2.2 million shares traded), JKH Rs 170 million (818,000 shares traded), LOLC Finance Rs 162 million (22.3 million shares traded) and Sampath Bank Rs 125 million (1.5 million shares traded). During the day 198 million share volumes changed hands in 24000 transactions.

It is said that high net worth and institutional investor participation was noted in Pan Asia Banking Corporation, Commercial Bank and Melstacorp. Mixed interest was observed in Browns Investments, LOLC Finance and Singer Sri Lanka, while retail interest was noted in Amana Bank, Beruwala Resorts and Renuka Agri Foods. Foreign participation in market activity remained at subdued levels with foreigners closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and Pan Asia Banking Corporation) while the sector index gained 3.48%. The share price of Commercial Bank increased. The share price of Pan Asia Banking Corporation recorded a gain of Rs. 1.60 to reach Rs. 24.10.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) while the sector index increased by 0.47 percent. The share price of Browns Investments closed flat at Rs. 6.20.

Yesterday, the rupee opened stronger at Rs 296.10/20 to the US dollar after closing at Rs 296.85/297.00 on the previous day, dealers said, while bond yields were down.

A bond maturing on 15.12.2026 was quoted at 11.28/35 percent from 11.28/32 percent. A bond maturing on 15.09.2027 was quoted down at 11.70/75 percent from 11.70/80 percent. A bond maturing on 15.12.2028 was quoted at 12.10/20 percent.