CSE optimistic about Ranil Wickremesinghe’s election as president – The Island


By Hiran H. Senewiratne

The CSE remained optimistic yesterday after a crucial parliamentary vote which elected Ranil Wickremesinghe as the country’s new president. During the trading period, the All-Share Price Index climbed 100 points and then stabilized at 67.96 points, equity analysts said.

From July 1 to date, foreign releases reached over Rs 365 million, which was a positive scenario in the market. Both indexes gained 1.5%, while turnover remained above Rs. 1 billion for the third consecutive session, according to market analysts.

Market activity and foreign inflow were positive because local and foreign investors seem confident that the IMF bailout will come with the election of the new president yesterday. Amid these developments, both indices rose. All stock indices rose 67.96 points and S and P SL20 rose 7.2 points. The turnover amounted to Rs 1.3 billion with two crossings. These crossovers were reported in Melstacorp, which crossed 4.6 million shares to the tune of Rs 190 million; its shares traded at Rs 41 and JKH 1.4 million shares volume changed hands at Rs 169.4 million; its shares traded at Rs 121.

In the retail market, the top seven companies that primarily contributed to revenue were; Browns Investments Rs 174 million (21.3 million shares traded), Expolanka Holdings Rs 113 million (628,000 shares traded), Lanka IOC Rs 65.9 million (846,000 shares traded), Hayleys Rs 64.6 million (883 000 shares traded), Softlogic Life Insurance Rs 63.6 million (one million shares traded), Softlogic Capital Rs 33.9 million (5.5 million shares traded) and Kotagala Plantations Rs 32.5 million (5. 7 million shares traded). During the day, 82.7 million volumes of shares changed hands in 16,000 transactions.

He said high net worth and involvement of institutional investors have been noted in Melstacorp. Mixed interest was seen from Expolanka Holdings, Lanka IOC and Hayleys, while retail interest was noted from Browns Investments, Kotagala Plantations and ACME Printing & Packaging (rights).

From a sector perspective, Food, Beverages & Tobacco was the largest contributor to market revenue (thanks to Melstacorp and Browns Investments), while the sector index gained 2%. Melstacorp’s share price gained 60 cents (1.57%) to close at Rs. 38.80. Browns Investments’ share price recorded a gain of 10 cents (1.25%) to close at Rs. 8.10.

The transportation sector was the second largest contributor to market revenue (due to Expolanka Holdings), while the sector index increased by 0.71%. Expolanka Holdings, Lanka IOC and Hayleys were also among the top revenue contributors.

Yesterday, the Central Bank announced the daily buying rate for the dollar at Rs 358.53 and the selling price at Rs 368.90.


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