Treasury bill rates decline by 9 basis points, enabling bourse to recover

By Hiran H.Senewiratne

The stock market resumed its trading activities in a volatile manner yesterday due to month- end selling pressure but later in the day it noted some recovery due to Treasury bill rates going down by 9 basis points, while policy rates remained unchanged, market analysts said.

Amid those developments both indices moved downwards. The All Share Price Index went down by 68 points while S and P SL20 declined by 13.83 points. Turnover stood at Rs 8.4 billion with ten crossings.

Those crossings were reported in JKH, which crossed 38 million shares to the tune of Rs 858 and its shares traded at Rs 22.50, Access Engineering 12 million shares crossed for Rs 450 million and its shares traded at Rs 40, Aman Bank 16.5 million shares crossed for Rs 412 million; its shares traded at Rs 25, Commercial Bank 2.5 million shares crossed for Rs 374 million; its shares traded at Rs 149.50, People’s Leasing five million shares crossed for Rs 100 million; its shares traded at Rs 20, Sampath Bank 700,000 shares crossed to the tune of Rs 84.5 million; its shares traded at Rs 118.50, HNFC one million shares crossed to the tune of Rs 54 million; its shares sold at Rs 54, Expack Corrugated two million shares crossed to the tune of Rs 30 million; its shares traded at Rs 15, Chevron Lubricants 150,000 shares crossed for Rs 24 million; its shares traded at Rs 160 and Richard Pieris 746,000 shares crossed to the tune of Rs 20.5 million; its shares fetched Rs 27.50.

In the retail market, companies that mainly contributed to the turnover were; Browns Investments Rs 682 million (74 million shares traded), Access Engineering Rs 667 million (17 million shares traded), JKH Rs 398 million (17.5 million shares traded), Sampath Bank Rs 223 million (1.8 million shares traded), HNB Rs 201 million (518,000 shares traded) and Dipped Products Rs 155 million (25 million shares traded. During the day 387 million share volumes changed hands in 38222 transactions.

It is said that the manufacturing sector was the top contributor to the turnover, especially with the JKH crossing and retail contribution, while the banking and financial sector was the second largest turnover contributor. Other sectors performed slightly well, which was affected due to selling- pressure in early sessions, market analysts said.

Yesterday the rupee was quoted at Rs 296.50/60 to the US dollar in the spot market, stronger from Rs 297.05/15 to the US dollar on the previous day, while bond yields were slightly down, dealers said.

Stocks were up 0.24 percent. A bond maturing on 15.12.2026 was quoted at 9.10/12 percent, down from 9.10/20 percent. A bond maturing on 15.02.2028 was quoted at 10.12/15 percent. A bond maturing on 01.05.2028 was quoted at 10.27/33 percent. A bond maturing on 15.10.2028 was quoted at 10.40/50 percent. A bond maturing on 15.09.2029 was quoted at 10.85/90 percent, down from 10.85/92 percent. A bond maturing on 15.10.2030 was quoted at 11.30/35 percent, up from 11.30/37 percent.