Optimism about IMF review directly affects market rebound

By Hiran H Senewiratne 

Share trading on the Colombo Stock Exchange (CSE) opened under selling pressure yesterday but rebounded later as local and foreign investors expressed optimism over Sri Lanka’s prospects for a successful IMF board-level review of its Extended Fund Facility (EFF) programme.

“Driven by that sentiment, both indices moved upwards; All Share Price Index up by 117 points while S and P SL20 up by 7.3 points”, market analysts said.

Meanwhile, turnover stood at Rs 1.6 billion with four crossings. Those crossings were reported in  Central Industries 300,000 shares crossed to the tune of Rs 45 million and its share price traded at Rs 150, Commercial Bank 285,000 shares crossed to the tune of Rs 41.9 million and its share price traded at Rs 147, Cheveron Lubricant 275,000 shares crossed to the tune of Rs 40.9 million and its share price traded at Rs 152 and JAT Holdings 880,000 shares crossed to the tune of Rs 23.7 million and its share price traded at Rs 27.

In the retail market top six companies that have mainly contributed to the tune of Rs JKH Rs 113 million (5.2 million shares traded), Chevron Lubricants Rs 107 million (909,000 shares traded), Sampath Bank Rs 70.3 million (581,000 shares traded), Aiken Spence  Rs 58.7 million (712,000 shares traded), Access Engineering Rs 48.9 million (1.2 million shares traded) and HNB Rs 47.7 million (150,000 shares traded).During the day 67.4 million shares volumes changed hands in 16700 transactions.

The Banking and Financial sector was very active, especially Sampath Bank and Commercial Bank, while in the manufacturing sector JKH was every active during the day.

Yesterday, the Central Bank  announced the US Dollar rate. Sri Lanka’s rupee was quoted at Rs 295.40/70 to the US dollar in the spot market  dealers said, while bond yields were slightly down.

A bond maturing on 15.12.2026 was quoted at 8.75/80 percent.

A bond maturing on 15.06.2029 was quoted at 10.65/70 percent, from 10.74/77 percent.

A bond maturing on 15.10.2030 was quoted at 11.11/14 percent, from 11.13/18 percent.