Share market trading marked by volatility; indices dip

By Hiran H. Senewiratne

The stock market was volatile throughout yesterday and witnessed mixed reactions despite the Central Bank’s stance on non- adjusting interest rates, market analysts said.The All Share Price Index went down by 1.97 points, while S and P SL20 went up by five points. Turnover stood at Rs 7.3 billion with six crossings.

Those crossings were reported in JKH, which crossed 2.1 billion shares; its shares traded at Rs 22.60, Access Engineering three million shares crossed to the tune of Rs 127 million and its shares traded at Rs 42.50, Seylan Bank (Non- Voting), 500,000 shares crossed to the tune of Rs 29.5 million; its shares traded at Rs 59, Commercial Bank 150,000 shares crossed for Rs 24.4 million; its shares sold at Rs 16.20 and Aumax 1.25 million shares crossed for Rs 20 million; its shares fetched Rs 16.

In the retail market top six companies that mainly contributed to the turnover were; JKH Rs 887 million (39.1 million shares traded), Access Engineering Rs 262 million (6.2 million shares traded), Softlogic Capital Rs 230 million (37 million shares traded), Browns Rs 21 million (22..9 million shares traded), Sierra Cables Rs 190 million (11.1 million shares traded) and HNB Rs 154 million (438000 shares traded). During the day 364 million share volumes changed hands in 35472 transactions.

It is said that the manufacturing sector was the main contributor to the turnover especially with the JKH crossing and retail trade contributed approximately half of the turnover, while the banking sector was the second largest contributor to the market.

Apart from that, Fitch Ratings has assigned Singer Finance’s proposed Sri Lankan rupee-denominated subordinated listed debentures an expected National Long-Term Rating of ‘BBB-(EXP)(lka)’.

“This reflects our baseline notching for loss severity for this debt class and our expectations of poor recoveries in the event of default, said Fitch Ratings.

There is no additional notching for non-performance risk, the rating agency said, as the proposed notes do not contain going-concern loss-absorption.

Yesterday the rupee was quoted at Rs 296.60/90 to the US dollar in the spot market , weaker from 296.40/70 to the US dollar on the previous day, while bond yields were down amidst the ongoing auction, dealers said.

An issue of Rs 40,000 million Treasury Bonds was ongoing. A bond maturing on 15.02.2028 was quoted at 10.05/15 percent, up from 10.05/12 percent. A bond maturing on 15.09.2029 was quoted at 10.70/80 percent, down from 10.80/85 percent. A bond maturing on 15.10.2030 was quoted at 11.28/30 percent, up from 11.25/30 percent.