Business

Notable dip in blue-chip counters as macro and micro uncertainties weigh on bourse

Published

5 years ago

2022/02/16

By Hiran H.Senewiratne

The CSE surrendered its early gains to close marginally lower yesterday as looming macro and micro economic uncertainties weighed on investor sentiment amid a significant drop in blue-chip counters, stock market analysts said.

Despite global tensions with regard to the Russian- Ukraine issue easing out, since Russia is reportedly looking for a diplomatic intervention, the local micro economic front did not seem to facilitate profitable stock market operations, which factor dragged the bourse to negative territory, stock market analysts added. Moreover, an increase in world crude oil prices to the higher level of US $ 94 per barrel from US $ 72, put more pressure on the Sri Lankan economy due to the ongoing currency crisis, market analysts pointed out.

Against this backdrop, the stock market started on a positive note but later turned negative, especially with regard to blue-chip counters. Both indices moved downward. The All- Share Price Index went down by 106 points and S and P SL20 declined by 16.8 points.

Turnover stood at Rs 3.2 billion with a single crossing. The crossing was recorded from Melstacorp, which crossed 390,000 shares to the tune of Rs 26.6 million, its shares traded at Rs 56.

In the retail market, top seven companies that were mainly contributed to the turnover were; Commercial Leasing and Finance Rs 756 million (16.9 million shares traded), LOLC Finance Rs 460 million (17.2 million shares traded), Browns Investments Rs 229 million (16.2 million shares traded), Expolanka Rs 163 million (503,000 shares traded), Sinhaputhra Finance Rs 142 million (4.2 million shares traded), Softlogic Life Insurance Rs 102.6 million (738,000 shares traded) and Softlogic Holdings Rs 68.8 million (953,000 shares traded). During the day 108 million share volumes changed hands in 36000 share transactions.

The index pared early gains thereupon and slipped into negative territory as investors realized quick profits, capitalizing on recent sharp price increases in select heavyweight counters. However, activity continued at moderate levels with daily turnover coming in at a four-month low. The breadth of the market ended negative with 78 price gainers and 121 decliners, market watchers said.

It is said that foreigners recorded a net outflow of Rs. 42 million, while their participation increased marginally to 2.7 per cent of turnover (previous day 2.3 percent). Reportedly, high net worth and institutional investor participation was noted in Royal Ceramics, Softlogic Life Insurance and LOLC Holdings.

Mixed interest was observed in Expolanka Holdings, Vallibel Finance and Sunshine Holdings, while retail interest was noted in SMB Leasing non-voting, Dialog Axiata and Browns Investments. The share price of Vallibel Finance gained Rs. 3.50 to close at Rs. 55.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics), while the sector index increased by 0.06 per cent. The share price of Royal Ceramics recorded a gain of 60 cents to close at Rs. 71.90. Further First Capital Holdings and First Capital Treasuries announced subdivision of shares from one existing share into four new shares.

Yesterday, the US dollar was quoted at Rs 202.52, which was the controlled price of the Central Bank. The Central Bank has imposed a ceiling of Rs 203 per US dollar. However, market sources said that the actual price would be more than Rs 250.

All News Advertisement

Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

7 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

7 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

7 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.