Stimulus from reserve buffers
By Hiran H.Senewiratne
Trading at the Colombo Stock Exchange (CSE) was bullish throughout yesterday due to turnover surpassed Rs 14 billion and the All Share Price Index recorded the highest ever 9,163 points in the stock market history, stock market analysts said. During the day both indices moved upwards. All Share Price Index up by 160.5 points and S and P SL20 up by 75.9 points. Main contributing factor to reach All Share Price to the historic highest level and the turnover to touch Rs 14.65 billion due to the significant improvement in the investor sentiment as Sri Lanka was able to secure US$ 1.3 billion worth of foreign reserves that received from a Special Drawing Rights (SDR) allocation of International Monetary Fund (IMF), a disbursement under the Currency Swap Arrangement with the Bangladesh Bank and another loan from Chinese Development Bank.The bourse appeared challenging as Expolanka Holdings on the previous day dislodged LOLC Holdings yet again to reclaim the most valued status, stock market analysts said.
Expolanka and Browns Investments were the main contributors yesterday for the All Share Price Index. Those two companies’ share prices were also appreciated. Expolanka Holdings share price increased from Rs 167.75 to Rs 181, which was Rs 13.25 or eight percent increased and Browns Investments share price appreciated from Rs 10.40 to Rs 11.50, which was 11 percent or Rs 1.10 appreciation.
Turnover stood at Rs 14.6 billion with five crossings. Those crossings were reported in HNB where five million shares crossed for Rs 675 million and its share price traded at Rs 135, Royal Ceramic 2.8 million shares crossed for Rs 112.8 million and its share price traded at Rs 41, HNB (Non Voting) 837,000 shares crossed for Rs 104.6 million and its share price traded at Rs 125, Sampath Bank one million shares crossed for Rs 51.5 million and its share price traded at Rs 51.50 and Commercial Bank 500,000 shares crossed for Rs 42.75 million and its share price traded at Rs 85.50.
In the retail market top five companies that mainly contributed to the turnover were Expolanka Rs 4.7 billion (26 million shares traded), Browns Investments Rs 2.9 billion (257 million shares traded), Hayleys Rs 996 million (8.4 million shares traded), LOLC Rs 674 million (1.1 million shares traded), Royal Ceramic Rs 670 million (15.2 million shares traded). During the day 484 million share volume changed hands in 66740 transactions.Since early last week investors have ignited a battle between Expolanka and LOLC for the number one position, with each holding a forte for a day only. Analysts claimed Expolanka remains solid and on demand given the large volumes traded since early last week. It retaining the most valued status for a second day running today would prove this view. Others believe Expolanka is now overpriced. Nevertheless, the stock market, which is on an all-time high, has developed a craving for companies with strong dollar earnings and both Expolanka and LOLC, as well as Hayleys and several Group companies are being sought after for the same reason.
SLT-MOBITEL donates fourth PCR machine to Matara District Hospital
Recognising the importance to enhance Sri Lanka’s PCR testing capacity to curtail the spread of COVID-19 and to protect citizens, SLT-MOBITEL continues its support by donating yet another vital PCR machine to the District General Hospital in Matara recently.
The donation of the PCR machine valued at over Rs. 5.7 million is part of SLT-MOBITEL’s ‘Sabandiyawe Sathakaraya’ CSR initiative in further strengthening the nation’s healthcare systems and assisting communities in need.
The equipment was handed over to the Deputy Director of the Matara Hospital Doctor Upali Rathnayaka in the presence of Rohan Fernando, Group Chairman, SLT-MOBITEL; Lalith Seneviratne, Group Chief Executive Officer, SLT-MOBITEL; Kiththi Perera, CEO, SLT; Shashika Senarath, CMO, Mobitel along with Regional GM, SLT; Regional Head – Mobitel and Hospital Staff.
Previously, PCR machines were donated to the Base Hospital, Karawanella, District General Hospital, Matale and the University Hospital of the Kotelawala Defense University. SLT-MOBITEL appreciates the support received from all Sri Lankans towards ‘Daana Paaramitha’ which was conceptualized as a platform to further increase community involvement in carrying out relief efforts to support families affected by the pandemic.
Extension of lockdown negatively impacts CSE
By Hiran H. Senewiratne
CSE trading activities commenced yesterday in a lacklustre manner with little share-buying interest and later on became negative following the government’s announcement on the lockdown extension until October 1, stock market analysts said.
The Colombo International Financial Centre (CIFC) at the Port City was set to commence this month and has been delayed until December owing to the current Covid 19 situation. This also affected CSE trading activities yesterday, analysts said.
Consequently, the stock market lost steam yesterday, closing on a negative note as investor sentiment remained erratic due to internal and external environmental factors. Both indices moved downwards or to negative territory despite healthy turnover in the market. The All Share Price Index went down by 46.09 points and S and P SL20 declined by 17.93 points. Turnover stood at Rs. 3.8 billion with two crossings. Those crossings were reported in Expolanka, where 600,000 shares crossed for Rs. 101.1 million, its shares trading at Rs. 158.50 and Sampath Bank one million shares crossed for Rs. 49.5 million, its shares traded at Rs. 49.50.
In the retail market, some companies that mainly contributed to the turnover were; Expolanka Holdings Rs. 1.2 billion (7.4 million shares traded), JKH Rs. 604 million (4.6 million shares traded), Browns Investments Rs. 540 million (58.3 million shares traded) and Hayleys Rs. 204 million (2 million shares traded).
It is said that following two sessions of gains, the indices closed in the red due to price declines in large-cap stocks as investors opted to book modest returns after the recent sharp rally. Stocks such as Expo, LOLC, and JKH, which saw sharp gains in the past two sessions witnessed profit-taking at higher levels and weighed on the momentum throughout the session.
Further, high net worth and institutional investor participation was noted in Sampath Bank. Mixed interest was observed in Expolanka Holdings, Tokyo Cement Company and LOLC Holdings, while retail interest was noted in Browns Investments, Lanka Orix Finance and Industrial Asphalts. During the day 153 million share volumes changed hands in 24000 transactions.
As of yesterday, the current exchange rate of 1 US dollar was equal to 199.607 Sri Lankan rupees. This is an increase of 7.856656 percent (or +14.5401 LKR) compared with the same time last year (17 September 2020), when 1 US dollar equaled 185.067 Sri Lankan rupees.
Lockdown takes toll on Sri Lanka’s manufacturing sector activities
The resurgence of the COVID-19 pandemic in August 2021 has slowed down the manufacturing activities in the country. Accordingly, the manufacturing PMI recorded an index value of 45.1 in August 2021 with a fall of 12.7 index points from the previous month, mainly driven by the decrease in New Orders, Production, Employment, and Stock of Purchases sub-indices. The decline in New Orders and Production, especially in the manufacture of food & beverages, furniture, and textiles & wearing apparel sectors, have mainly contributed to the overall decrease of the manufacturing PMI. Many respondents in those sectors highlighted that their local orders and distribution channels were affected due to the lockdown imposed as a measure of containing the pandemic. Further, many of them also emphasised that factory operations were disrupted due to the spread of the COVID-19 virus among employees. Employment sub-index also declined in line with these developments.
The decrease of Stock of Purchases was in line with the decline in New Orders and Production. Further, the difficulties encountered in placing purchase orders and in settling foreign payments also adversely affected the supply chain of raw materials and production schedules. Many respondents stressed that the continuous increase in the cost of imported raw materials adversely affected their profit margins. Meanwhile, Suppliers’ Delivery Time lengthened at a slower rate in August 2021. The manufacturers cautioned that the uncertainty over the COVID-19 pandemic would continuously hinder the prospects of the manufacturing sector, yet, overall expectations for manufacturing activities for the next three months remained above the neutral threshold.
Services PMI dropped to an index value of 46.2 in August 2021 with the restrictions imposed to contain the further spread of the COVID-19. New Businesses, Business Activity, Employment and Expectations for Activity sub-indices recorded declines. New Businesses decreased in August compared to the previous month mainly with the declines observed in wholesale and retail trade, insurance, real estate, and education sub-sectors. Business Activities across most of the sub-sectors such as, wholesale and retail trade, real estate, insurance and other personal activities reported considerable declines indicating the adverse effects of travel restrictions on their business operations. Nevertheless, transportation sub-sector recorded some improvements solely due to the growth in freight volumes. Moreover, financial services sub-sector also indicated improvements despite the disturbances from travel restrictions. Employment continued to fall at a higher pace as retirements and voluntary resignations exceeded the number of recruitments carried out during the month. Backlogs of Work increased at a higher pace in August along with the reduction in staff availability amid travel restrictions and growing COVID-19 infections of staff. (CBSL)
President instructs officials to vaccinate kids with Pfizer
SLT-MOBITEL donates fourth PCR machine to Matara District Hospital
Sumanthiran demands immediate due process against Lohan
7-billion-rupee diamond heist; Madush splls the beans before being shot
The Burghers of Ceylon/Sri Lanka- Reminiscences and Anecdotes
Unfit, unprofessional, fat Sri Lankans
Sports6 days ago
Killi; Sri Lanka’s Mr.Cricket
news3 days ago
Private member’s Bill deemed unconstitutional:Tissa says he only complied with ‘Bills Office’ request
Features5 days ago
Ivermectin – A possible win-win situation
news5 days ago
Govt. urged to stop foreign scholarships awarded on basis of ethnicity
Features6 days ago
Remembering Dr. Tissa Wickremasuriya
Features6 days ago
SRI LANKA SHOULD CLOSE DOWN MOST OF OUR OVERSEAS MISSIONS AS A STEP TOWARDS REDUCING PUBLIC EXPENDITURE
Features4 days ago
Commodifying ‘Discipline’ and Militarising Education
Features6 days ago
A Visionary Ahead Of His Time