Share market hit by parliament dissolution apprehensions

By Hiran H.Senewiratne

The stock market yesterday witnessed selling pressure due to political uncertainty stemming from the possibility of parliament being dissolved and former President Mahinda Rajapaksa’s statement urging the government not to divest state owned enterprises until elections are over, market analysts said.

Consequently, both indices moved downwards. The All Share Price Index went down by 11.06 points while S and P SL20 declined by 3.79 points. Turnover stood at Rs 1.79 billion with three crossings.

Those crossings were reported in PGP Glass, where 3 million shares crossed to the tune of Rs 87.3 million; its shares trading at Rs 29.10, Renuka Food (Rights) 25.5 million share volumes crossed for Rs 56.1 million; its shares traded at Rs 2.20 and Hayleys 250,000 shares crossed to the tune of Rs 23.1 million; its shares traded at Rs 92.70.

In the retail market top seven companies that mainly contributed to the turnover were; Hemas Holdings Rs 365.8 million (4.1 million shares traded), Royal Ceramic Rs 75.2 million (2 million shares traded), JKH Rs 71.1 million (342,000 shares traded), Ambeon Capital Rs 67.3 million (4.8 million shares traded), HNB Rs 44.8 million (220,000 shares traded), LMF Rs 43.4 million (1.35 million shares traded) and Browns Investments Rs 43.3 million (6.5 million shares traded). During the day 92.1 million share volumes changed hands in 14000 transactions.

Yesterday the rupee opened stronger at Rs 298.80/299.30 to the US dollar from Rs 299.00/30 the previous week, dealers said.

Bond yields were broadly steady, dealers said. A bond maturing on 15.12.2026 was quoted at 10.45/50 percent from 10.40/55 percent. A bond maturing on 15.09.2027 was quoted up at 10.75/85 percent from 10.70/85 percent. A bond maturing on 15.03.2028 was quoted down at 11.10/15 percent from 11.15/25 percent.