By Hiran H.Senewiratne
The CSE began with a sharp drop amid lacklustre investor activity yesterday due to selling pressure on certain stocks but during the latter part of the day it began recovering due to positive quarterly results reported in many companies despite the turbulent economic situation during the last few months, stock market analysts said.
Both indices declined by over 2.5 per cent, while turnover was reported at below the Rs. 1 billion level, involving 831 million shares. Despite local pessimism, foreigners remained net buyers, market analysts said. However, the average turnover level during the year was Rs 3.5 billion.
It is said that indices closed sharply lower due to broad-based selling pressure. The ASPI declined by 25.7 points and the S&P SL20 index declined by 26.6 points. The turnover stood at Rs 831 million with two crossings. The crossing were reported in Renuka Hotel, which crossed one million shares to the tune of Rs 69 million and its shares traded at Rs 69 and Expolanka Holdings 250,000 shares crossed to the tune of Rs 22.5 million; its shares traded at Rs 150.
In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 89.7 million (665,000 shares traded), Expolanka Holdings Rs 60.2 million (391,000 shares traded), Lanka IOC Rs 51.3 million (305,000 shares traded), Tokyo Cement (Non-Voting) Rs 49.3 million (1.7 million shares traded), ACL Cables Rs 32.2 million (449,000 shares traded), Nestle Rs 32 million (34000 shares traded) and Browns Investments Rs 25.6 million (4.4 million shares traded). During the day 39.2 million share volumes changed hands in 14000 transactions.
It is said high net worth and institutional investor participation was noted in Renuka Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and JKH, while retail interest was noted in Browns Investments, LOLC Finance and Ex-Pack Corrugated Cartons.
The Capital Goods sector was the top contributor to the market turnover (due to JKH, ACL Cables and Renuka Holdings) while the sector index lost 1.23 percent. Share price of JKH moved up by Rs. 3.50 (2.71 per cent) to close at Rs. 132.50. The share price of ACL Cables recorded a loss of Rs. 6.90 (8.77%) to close at Rs. 71.80. The share price of Renuka Holdings declined by 70 cents (4.52 per cent) to close at Rs. 14.80.
Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) while the sector index decreased by 7.38 per cent. The share price of Expolanka Holdings decreased by Rs. 12.25 (7.39 per cent) to close at Rs. 153.50.
Lanka IOC was also included among the top turnover contributors. The share price of Lanka IOC lost Rs. 10.50 (5.81per cent) to close at Rs. 170.25.
Yesterday, the Central Bank- announced US dollar buying price was Rs 360.96 and the selling price Rs 371.79. The inflation level was 73.70 per cent.
