Share market in suspenseful wait over interest rates; selling pressure up

By Hiran H.Senewiratne

The stock market indicated a downward trend yesterday because local and foreign investors are anticipating interest rates to remain unchanged at the Central Bank’s monthly policy review meeting scheduled for today. Consequently, selling pressure was noted and retail participation was relatively low, market analysts said.

Amid those developments mixed reactions in the indices were noted. All Share Price Index went down by 26.62 while S and P SL20 rose by 1.4 points. Turnover stood at Rs 1.28 billion with four crossings.

Those crossings were reported in Sanasa Development Bank, which crossed 4.8 million shares to the tune of Rs 176 million; its shares traded at Rs 36.50, NTB 984,000 shares crossed for Rs 103.4 million; its shares traded at Rs 105, Sampath Bank 700,000 shares crossed for Rs 53.9 million and its shares sold at Rs 77 and Agarapathana Plantations 6.5 million shares crossed to the tune of Rs 49 million; its shares fetched Rs 7.50.

In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 83.9 million (441,000 shares traded), ACL Cables Rs 78.2 million (933,000 shares traded), Vallibel One Rs 75.3 million (1.5 million shares traded), First Capital Treasuries Rs 53.3 million (1.8 million shares traded), Capital Alliance Rs 51.3 million (959,000 shares traded), Agarapathana Plantations Rs 39.1 million (5.2 million shares traded) and NTB Rs 34.4 million (328,000 shares traded). During the day 54.3 million share volumes changed hands in 9700 transactions.

Yesterday the rupee opened at Rs 302.80/303.00 to the US dollar in the spot forex market, stronger from 303.30/45 last Friday, dealers said, while bond yields were broadly steady. A bond maturing on 15.12.2026 was quoted at 11.20/40 percent from 11.30/38 percent. A bond maturing on 15.12.2028 was quoted at 12.10/20 percent from 12.10/18 percent.