By Hiran H.Senewiratne
The CSE has seen over Rs. 100 billion in value wiped off in two days as investor sentiment turned cautious amid macro issues as well as prospects of companies but the turnover level was satisfactory yesterday.
At the beginning of trading buying interest was noted on most of counters but suddenly the momentum dipped because of the 25 per cent surcharge tax on taxable income of companies that earn more than Rs two billion per annum. This created some gloom in the mind set of investors, stock market analysts said.
LOLC Group shares did not perform well yesterday despite LOLC Holdings being authorized to buy 73.2 per cent of Key Microfinance Bank PLC of Kenya.
LOLC is buying the Kenyan firm through a subsidiary in Mauritius, which is a financial centre. Mauritius had the first currency board in Asia set up by the British authorities in 1849. Ceylon’s currency board was set up in 1885, market analysts said.
Amid those developments both indices moved downwards. The All -Share Price Index went down by 300 points and S and P SL20 declined by 92.8 points. Turnover stood at Rs 5.3 billion with two crossings. Those crossings were reported in TJ Lanka, which crossed 500,000 shares to the tune of Rs 23.3 million and its shares traded at Rs 46.50 and Softlogic Holdings 300,000 shares crossed to the tune of Rs 21.9 million, its shares traded at Rs 73.
In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Rs 685 million (2.2 million shares traded), Softlogic Life Insurance Rs 539 million (3.2 million shares traded), Browns Investments Rs 371 million (26.1 million shares traded), Softlogic Capital Rs 255 million (14.3 million shares traded), LOLC Finance Rs 255 million (9.9 million shares traded), Commercial Leasing and Finance Rs 226 million (5.5 million shares traded) and Softlogic Holdings Rs 201 million (2.7 million shares traded). During the day 207 million share volumes changed hands in 52000 transactions.
During the latter part of the session the index gradually recouped but failed to hold a positive momentum before closing for the day at 12,382 losing. Turnover was led by a joint contribution of 44 per cent from the Diversified Financials sector and Capital Goods sector.
It is said that high net worth and institutional investor participation was noted in Teejay Lanka, Lanka Orix Finance and Vallibel One. Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and Hela Apparel Holdings Limited, while retail interest was noted in Industrial Asphalts, Browns Investments and Commercial Leasing & Finance.
The Capital Goods sector was the second highest contributor to the market turnover while the sector index decreased by 2.26 per cent. Expolanka Holdings, Browns Investments and Softlogic Life Insurance were also included among the top turnover contributors.
Yesterday the US dollar was quoted at Rs 202.06, which was the controlled price of the Central Bank. The Central Bank has imposed a controlled price of Rs 203 per US dollar. The actual price would be around Rs 250, financial sources said.
Sri Lanka’s economic confidence index plummets
‘No one has rated Sri Lanka’s economic condition as excellent. 1.8 % rated it as good and 1.3 % rated it as getting better. The resulting score was a (-) 96. This rating was (-) 83 in January 2022, a wide ranging Verite Research public opinion survey reveals.
Key findings of the survey:
Government approval rating drops from 10% to 3%
The second round of the Gallup Style “Mood of the Nation” poll was conducted in June by Verité Research. It assessed the approval, satisfaction, and confidence of the nation in relation to the government, the country, and the economy.
The poll was conducted as a part of the syndicated survey instrument by Verité Research. This instrument also provides other organisations the opportunity to survey the sentiments of Sri Lanka.
1. Government approval rating | 3% | To the question, “Do you approve or disapprove of the way the current government is working?” only 3% said they approve. In January 2022 this rating was at 10%.
2. Sri Lanka satisfaction | 2% | To the question, “In general, are you satisfied or dissatisfied with the way things are going in Sri Lanka?” only 2% said they were satisfied. This rating was at 6% in January 2022.
3. Economic confidence | negative (-) 96 | Multiple choice questions on the condition and trajectory of the economy are used to generate an economic confidence score. The score can range from negative (-) 100 to positive (+) 100. A score above zero means more people see the economic conditions positively rather than negatively. If everyone thinks the economy is in either excellent or good condition, and everyone also thinks it is getting better, the score will be (+) 10. If everyone thinks that the economy is in a poor condition, and everyone also thinks it is getting worse, the score will be a (-) 100. No one rated the economic condition as excellent. 1.8% rated it as good; and 1.3% rated it as getting better. The resulting score was a (-) 96. This rating was (-) 83 in January 2022.
Implementation of “Mood of
The poll is based on an island wide nationally representative sample of responses from 1,052 Sri Lankan adults, conducted in June 2022. The sample and methodology was designed to ensure a maximum error margin of under 3% at a 95% confidence interval. The polling partner was Vanguard Survey (Pvt) Ltd.
Decline in share market in the wake of rate hike reports
By Hiran H.Senewiratne
CSE trading activities began on a positive note yesterday but during the latter part of the day the market experienced a dip on account of the overall supply chain economy being subjected to a contraction, stemming from the fuel crisis. Consequently, CSE activities were relatively low keyed, market analysts said.
“We are reverting to the negative. There is uncertainty on all fronts, from the political to the economic. Therefore, we are expecting a rate hike on Thursday. This is creating a bit of a cloud and we may see this continuing further, a top market analyst said.
Even if top level decision- making is happening in Sri Lanka the impact is not felt at the grassroots level. This has resulted in unrest in the country, the analyst said.
Amid those developments, both indices moved downwards. The All- Share Price Index went down by 97.9 points and S and P SL20 declined by 34.3 points. Turnover stood at Rs 1.3 billion with one crossing. The crossing was reported in JKH, which crossed 600,000 shares to the tune of Rs 73.2 million, its shares traded at Rs 122.
In the retail market, the top seven companies that mainly contributed to the turnover were; Lanka IOC Rs 611 million (7.3 million shares traded), Expolanka Holdings Rs 173.9 million (one million shares traded). LOLC Holdings Rs 47.4 million (120,000 sha4es traded), Hayleys PLC Rs 46.5 million (697.000 shares traded), Browns Investments Rs 46.3 million (6.4 million shares traded), JKH Rs 21 million (173,000 shares traded) and Softlogic Holdings Rs 20.5 million (794,000 shares traded). During the day 109 million share volumes changed hands in 15000 transactions.
The International Monetary Fund said last Thursday its talks with crisis-hit Sri Lanka had been “constructive”, thereby raising hopes it would soon grant preliminary approval for a desperately needed financial support package, observers said.
Meanwhile, the Colombo Consumer Price index rose 54.6 per cent year-on-year in June against a 39.1 per cent rise in May, according to the Statistics Department.
Yesterday the US dollar rate was Rs 360.73, which is now being controlled due to the prudent fiscal and monetary policies of the Central Bank.
Dialog Club vision members receive access to an exclusive screening of ‘Jurassic World Dominion’
In a bold and breath-taking new global adventure, the epic conclusion to the Jurassic film franchise ‘Jurassic World Dominion’ hit theatres across the world on June 10. Just a day after its global premiere, Dialog Club Vision Red members and their loved ones received special access to an exclusive screening of the film at the Kandy City Centre Multiplex on June 11.
The explosive end to the Jurassic era sees two generations of the film’s franchise unite for the first time with Hollywood’s Chris Pratt and Bryce Dallas Howard joined by Oscar winner Laura Dern, Jeff Goldblum and Sam Neill. Dialog Club Vision members were some of the first to witness the utopian world where Dinosaurs and humans co-exist.
With the best interests of its members and their loved ones at heart, Dialog Club Vision continues to deliver a world of exclusivity and privileges such as personalized care, exclusive discounts and offers, lifestyle and entertainment events and more. To explore more exciting offers available for Dialog Club Vision members, and to learn more about Sri Lanka’s premier loyalty programme, customers can visit the MyDialog App or visit dialog.lk/club-vision
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