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Thursday June 20th, 2024

Sri Lanka shares edge up at close on positive macro sentiments

ECONOMYNEXT – Sri Lanka shares gained on Wednesday after slipping for four sessions on the speculation of interest rates easing as T-bill auction yields fell for second week straight.

“Bourse edged up after four days of being in the red zone as investor confidence slightly improved over the expectation of an economic recovery from 2H2023, as stated by the CBSL in the policy report for 2023,” First Capital Market Research said in it’s daily note.

“It is also noted that inflation is expected to gradually decelerate in the 1H2023 and is likely to reach the desired level towards the end of 2023.”

Treasury counters too had moved up on the anticipation that interests would ease.
At the weekly T-bills auction, the debt office offered and sold 88 billion rupees with all maturities being fully subscribed and yields easing for second week straight.

The 3-months bills fell 86 basis points while the 6-months maturity fell 65 basis points.

The long term one-year maturity fell 12 basis points.

The main All Share Price Index (ASPI) closed at 0.16 percent or 13.18 points higher at 8,380.87

However, the government has decided to cut down expenditure as the financial crisis was worser than they expected it to be.

Market has been falling since the year started due to the proposed 65 percent electricity tariff hike while the government also hiked various excise duties.

The most liquid index S&P SL20 closed 0.17 percent or 4.4 points lower to 2,560.95.

First quarter of 2023 is expected to be negative with the taxations going in to effect from January 1st and there are talks of a hike in electricity tariffs, which has gained Cabinet approval and is waiting for recommendations by the Public Utilities Commission of Sri Lanka.

Whereas the second quarter was expected to be more positive with the anticipation of IMF getting through and with the interest rates expected to ease as the taxes starts to generate funds.

Sri Lanka is expecting a further contraction in the economy after a negative growth in 2022, Cabinet Spokesperson Bandula Gunawardena said at the Weekly Cabinet Press Briefing.

The market witnessed a turnover of 1.3 billion rupees, lower than this month’s 2.1 billion rupees average daily turnover. It is also comparatively much lower than 2022’s daily average turnover of 2.9 billion rupees.

The market saw a net foreign outflow of 12 million rupees. The net foreign inflow for the first seven session of January is 80 million rupees. The total foreign inflow of 2022 was 31 billion rupees.

WindForce pushed the index up to close at 9.5 percent higher at 17.3 rupees.

Melstacorp gained 2.2percent to close at 47 rupees and Hatton National Bank closed 1.9 percent higher at 77 rupees a share. (Colombo/Jan11/2023)

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Sri Lanka rupee closes stronger at 305.10/30 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed stronger ahead of the long weekend at 305.10/30 to the US dollar on Thursday, up from 305.40/55 to the US dollar Wednesday, dealers said, while some bond yields edged up.

A bond maturing on 15.12.2026 closed at 10.45/80 percent, up from 10.35/75 percent.

A bond maturing on 01.07.2028 closed at 11.20/45 percent.

A bond maturing on 15.09.2029 closed at 12.00/15 percent, up from 11.95/12.35 percent.

A bond maturing on 01.12.2031 closed at 12.05/25 percent.

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Sri Lanka stocks close up, JKH trade pushes turnover

ECONOMYNEXT – The Colombo Stock Exchange closed up on Thursday, data on its site showed.

The broader All Share Index closed up 0.19 percent, or 23.11 points, at 12,249; while the more liquid S&P SL20 Index closed up 0.15 percent, or 5.33 points, at 3,610.

Turnover was 2 billion. Nearly half of this (Rs980mn) came from a crossing on John Keells Holdings Plc. The share closed down at 202.00.

“There were several crossings today which pushed turnover,” market participants said.

“Institutions and high net-worth activity drove the market, while the retail investors we feel are still about uncertain and adopting a wait-and-see approach.”

Melstacorp Plc was among the companies that saw active volumes (Rs194mn) in the day. The share closed up at 87.10.

Top contributors to the index included TeeJay Lanka Plc (up at 41.70), Sampath Bank Plc (up at 79.50), Hatton National Bank Plc (down at 201.00). Hayleys Plc (up at 105.00) and its subsidiary Hayleys Fabric Plc (up at 46.60) were also positive contributors. (Colombo/Jun20/2024)

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Sri Lanka, India launch maritime rescue coordination centre

ECONOMYNEXT – Sri Lanka’s president Ranil Wickremesinghe and visiting Indian External Affairs Minister S Jaishankar marked the formal commissioning of a Maritime Rescue Coordination Centre in the island nation on Thursday.

The MRCC was constructed with a 6 million dollar grant from India.

It includes a centre at Navy headquarters in Colombo, a sub-centre in Hambantota and unmanned installations at Galle, Arugambay, Batticaloa, Trincomalee, Kallarawa, Point Pedro and Mollikulam.

Wickremesinghe and Jaishankar also launched, virtually, 106 houses in Kandy, Nuwara Eliya and Matale under the Indian Housing Project. 24 houses in each model village were handed over.

Jaishankar called on President Ranil Wickremesinghe at the President’s House earlier in the day for a one-on-one meeting, the president’s media division said.

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Indian FM Jaishankar in Sri Lanka to discuss partnerships amid project delays, ahead of polls

Jaishankar’s one-day official visit to Colombo was to discuss “wide-ranging issues of the partnership”, India said, amid delays of some key Indian projects ahead of a presidential poll in Sri Lanka. (Colombo/Jun20/204)

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