Share market trading on lacklustre track; interest rates expected to remain flat

CSE activities continued to be lackluster yesterday as local and foreign investors anticipated bank interest rates to remain flat at today’s Central Bank monthly monetary policy review meet. This means that there would be no boost for the share market, analysts said.

Both CSE indices showed mixed reactions. The All Share Price Index went down by 4.38 points, while the S and P SL20 rose by 2.6 points. Turnover stood at Rs 2.8 billion with nine crossings.

Those crossings were reported in Sampath Bank, which crossed 9.5 million shares to the tune of Rs 120 million, JKH 10.5 million shares crossed for Rs 215 million; its shares traded at Rs 20.5, HNB 209,000 shares crossed to the tune of Rs 65.8 million; its shares traded at Rs 315, Browns Investments 4.5 million shares crossed for Rs 33.3 million; its shares traded at Rs 7.40, Commercial Bank 200,000 shares crossed for Rs 29.3 million; its shares traded at Rs 146.5, Distilleries 732,000 shares crossed for Rs 24.5 million; its shares traded at Rs 33.5, Dipped Products 427,000 shares crossed for Rs 24.3 million; its shares sold at Rs 57, Hemas Holdings 200,000 shares crossed to the tune of Rs 23.9 million; its shares traded at Rs 119.5 and Dialog 1.5 million shares crossed for Rs 21.7 million; its shares sold at Rs 14.5.

In the retail market top six companies that mainly contributed to the turnover were; CCS Rs 130.9 million (1.6 million shares traded), Swisstech Rs 98.9 million (2.1million shares traded), Lanka IOC Rs 72.5 million (583,000 shares traded), Browns Investments Rs 67.5 million (9 million shares traded), Sampath Bank Rs 56.4 million (545,000 shares traded) and Commercial Bank Rs 55.2 million (445,000 shares traded). During the day 78.5 million share volumes change hands in 11000 transactions.

It is said that the banking sector was the main contributor to the turnover, as it contributed more than 50 percent to the turnover, especially with Sampath Bank crossings and retail trading activities. The second largest contributors to the turnover was the manufacturing sector; especially JKH.

Yesterday the rupee was quoted at Rs 296.70/95 to the US dollar in the spot market, relatively flat from 296.75/85 from the previous day, dealers said, while bond yields were up steeply.

A bond maturing on 15.10.2028 was quoted at 10.00/10 percent, up from 9.80/90 percent. A bond maturing on 15.09.2029 was quoted at 10.22/30 percent, up from 10.05/18 percent. A bond maturing on 15.10.2030 was quoted at 10.40/50 percent, up from 10.05/15 percent. A bond maturing on 15.12.2032 was quoted at 10.70/80 percent, up from 10.55/65 percent.

By Hiran H.Senewiratne