Panic selling of shares as rupee depreciation takes its toll
By Hiran H.Senewiratne
CSE activities were positive most of yesterday but began to decline during the latter part of the day due to panic selling by retail traders. The depreciation of the rupee against the dollar is worrying investors, stock market analysts said.
Trade Minister Bandula Gunewardene told parliament this week that the rupee exchange rate is controlled at 200 levels with great difficulty and if allowed to decline it could hit 300-350 levels, given past trends. However, he did not give a timeline for the Rs. 350 depreciation and other negative sentiments in the external environment combined with it to create some worries for CSE investors, analysts said.
Some index heavy companies were the main negative contributors to the All Share Price Index. Both indices moved downwards. The All Share Price Index moved down by 47.59 points and S and PSL20 went down by 25.78 points.
Turnover stood at Rs. 1.49 billion with one crossing. The crossing was reported in HNB, which crossed 179200 shares to the tune of Rs. 23.3 million; its shares traded at Rs. 130. It is said that share prices in 97 companies rose and 105 recorded negative.
LOLC shares went down by 3 percent or Rs. 9.50. Its shares started trading at Rs. 302.50, at the end of the day they moved down to Rs. 293, contributing six negative points to the All Share Price Index. Expolanka shares dropped by 5 percent or Rs. 2.30. Its shares started trading at Rs. 46 but at the end of the day they went down to Rs. 43.70, contributing 7.6 negative points to the All Share Price Index and Commercial Leasing, being an illiquid company in the CSE, contributed 7 negative points to the All Share Price Index yesterday. Its share price dropped by 7.8 percent or 50 cents. Its shares started trading at Rs. 6.40 at the beginning of the day and at the end of the day they moved down to Rs. 5.90.
Top five companies that mainly contributed to the turnover were, Browns Investments Rs. 478.4 million (86.5 million shares traded), Expolanka Rs. 131.8 million (94.7 million shares traded), Dipped Products Rs. 94.7 million (two million shares traded), JKH Rs. 73.8 million (494,000 shares traded) and LOLC Rs. 71.5 million (236,000 shares traded). During the day 114.2 million share volumes changed hands in 15700 transactions.
Sri Lanka’s rupee quoted steady at 199.00/200 to the one week US dollar on Thursday, while yields are flat in dull market, dealers said. The rupee last closed in the one-week forward market at 199.50/200.50 to the US dollar on Wednesday.
‘Govt. lacks mechanism to recover USD 40 billion spirited out of SL from 2008 to 2018’
By Hiran H.Senewiratne
The government doesn’t have any mechanism to recover the USD 40 billion that was siphoned out of the country illegally from 2008 to 2018 by Sri Lanka’s business elites, Senior Lecturer, Department of Economics, University of Peradeniya Dr. Kalpa Rajapaksha said.
“Most people think that the IMF loan is a victory for Sri Lanka without knowing its risk factors. These are exceptionally high because one of the main impacts would be for the banking sector whose liquidity is due to weaken on account of high tax impositions and certain economic reforms, Dr. Rajapaksha told The Island Financial Review.
Dr. Rajapaksha added: ‘The tax relief given during President Gotabaya Rajapaksha’s tenure triggered this issue, which cost government coffers more than Rs 450 billion. However, Sri Lanka has to carefully follow IMF recommendations taking its history into consideration. It is said that Greece and Ethiopia and several other countries absolutely failed by following IMF recommendations in the past.
‘We are in the dark as to the method of economic recovery because the government is attending to deeper, burning issues in the country, such as reduction of poverty and ending economic inequities.
‘The imposition of heavy taxes on people, especially professionals, via a wealth tax and a heritage tax by 2025 and the increasing of direct taxes, such as VAT, on low income classes, without taking into account the need for a wage hike, will iraise the poverty level and widen wealth inequalities.
‘Inflation at the global level is very high and strategies are required to increase exports and cut down the heavy import dependency of the economy. This is a prerequisite to address all economic woes.
‘The previous ruling party squandered and stole billions of dollars but the present government not having any plan to recover that money is a tragedy. Therefore, promoting neo- liberal principles is impossible under the current corruption scenario.
‘Further, the IMF has set the target of reducing the debt to GDP ratio to 0.7 per cent in 2023, along with their recommendations. Many people doubt the achievability of these aims.’
Global banking sector instabilities affect local bourse
By Hiran H.Senewiratne
CSE trading got off to a positive start but later turned negative yesterday due to huge selling pressure. The reasons being investor worries over a domestic debt restructuring mechanism after having secured the IMF loan and the negative global scenario when it comes to the banking sector, market analysts said.
According to analysts, during the last week strategically important banks in the global economic system went through credit default swaps, especially Silicon Valley Bank, Signature Bank and Credit Suisse Group AG. But another leading European Corporate Bank possibly facing a credit default swap, created some ripple effects for economies like Sri Lanka, analysts said.
The All- Share Price Index went down by 134.1 points and S and P SL20 declined by 51.6 points. Turnover stood at Rs 871 million with two crossings. Those crossings were reported in NDB, which crossed 1.2 million shares to the tune of Rs 51.6 million; its shares traded at Rs 43 and Aitken Spence 772,000 shares crossed for Rs 47.1 million, its shares traded at Rs 61.
In the retail market top seven companies that mainly contributed to the turnover were, SLT Rs 82 million (717,000 shares traded), Browns Investments Rs 52.8 million (8.2 million shares traded), Lanka IOC Rs 50.1 million (298,000 shares traded), Tokyo Cement (Non- Voting) Rs 36.5 million (388,000 shares traded), Expolanka Holdings Rs 33.6 million (251,000 shares traded), ALC Cables Rs 33.3 million (406,000 shares traded) and Sunshine Holdings Rs 27.2 million (633,000 shares traded). During the day 45.4 million share volumes changed hands in 15000 transactions.
The market is generating revenue from SLT over news of it being divested; moreover, there has been interest for the hotel and tourism indexes, since tourist arrivals and earnings have been attractive, an analyst said.
It is said that Treasury bond yields opened steady on Monday, while the rupee opened weaker at spot market, dealers said.
A 01.07.2025 bond was quoted at 30.75/31.00 per cent on Monday, up from 30.90/31.20 per cent on Friday. A 15.09.2027 bond was quoted at 28.00/70 per cent, up from 28.00/50 per cent from Friday. The Sri Lanka rupee opened at 322/325 against the US dollar, weaker from 320/325 a day earlier.
Holding ‘Raid Amazones’ for second consecutive year in SL, a rare honour for her – Head of Marketing Srilankan Airlines
By Hiran H.Senewiratne
More than 250 female French athletes arrived in Sri Lanka for the challenging ‘Raid Amazones’ adventure event that took place last week in Kandy. They arrived in Sri Lanka for the second consecutive year, which was a big achievement for the country when it comes to the tourism sector, Head of Marketing SriLankan Airlines Saminda Perera said.
“For the first time in ‘Raid Amazones’ history they selected one country for two consecutive years, which could be considered a great honour for Sri Lanka. This would enable more French tourists to arrive in Sri Lanka in the future, Perera told the media recently during the event in Kandy. ‘Raid Amazones’ will hit the streets of the fabled hill capital, Kandy, with the participation of over 250 female athletes.
‘Raid Amazones’ is a well-known annual destination adventure event originating in France, which features female athletes competing their way through a range of challenges, such as, orienteering, mountain biking, canoeing, riding, running and archery.
“Sri Lanka was chosen over rival destinations by the event’s founders due to the unparalleled warmth of its people and support on the ground to pull off a successful event. Their decision is also due to SriLankan Airlines’ tireless marketing efforts to secure the popular trail on successive occasions for Sri Lanka in its hour of need for international tourism support, Perera said.
Tourism sources added: “During the 21st edition of the trail, the participants will be able to connect with a potpourri of natural and historical highlights as they trek through the Kandyan plateau in Central Sri Lanka.
“Their journey, though, would begin from the moment that they step onboard SriLankan Airlines to fly from Paris to Colombo, on an aircraft dedicated to ‘Raid Amazones 2023’.
“Named as a UNESCO World Heritage Site, Kandy, the iconic setting of ‘Raid Amazones 2023’, is renowned for two of the most recognizable cultural symbols that define Sri Lanka.
“SriLankan Airlines partnered Raid Amazones in 2022 soon after recommencing operations to Paris.
“SriLankan Airlines, together with Connaissance de Ceylan, the official ground- handling partner of the event, will go all out to ensure that the French group experiences the best in Sri Lankan hospitality.
“This event will especially help create more awareness of Sri Lanka as an adventure travel hotspot among French travellers and the rest of Europe, where ‘Raid Amazones’ is sought-after and attracts adventure-seekers.”
Veteran singer and musician Professor Sanath Nandasiri passed away at the age of 81
Clearview AI used nearly 1m times by US police, it tells the BBC
Second ODI between New Zealand and Sri Lanka abandoned
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
U.S. Congress to probe assets fleecing by US citizens of Sri Lankan origin
Features4 days ago
Happy Birthday dearest Mrs. Peries !
News3 days ago
Mano says LG and PC elections equally important
News5 days ago
Decorated gunship pilot blacklisted for appearing on political stage
Midweek Review6 days ago
Growing foreign dependency and India’s USD 4 bn lifeline
News5 days ago
No more selling of Hajj visas, assures Minister
Breaking News6 days ago
Property tax to be replaced with Wealth Tax, Gift Tax and Estate Tax – President
Editorial6 days ago
Celebration of debt
Sports5 days ago
Sri Lanka’s flawed ODI strategies