Notable drop in blue chip counters as macro and micro uncertainties weigh on the stock market – The Island

By Hiran H. Senewiratne

The CSE gave up early gains to close marginally lower yesterday as looming macro and microeconomic uncertainties weighed on investor sentiment amid a significant drop in prime meters, equity analysts said.

Despite the easing of global tensions over the Russian-Ukrainian issue, as Russia is reportedly seeking diplomatic intervention, the local microeconomic front has not appeared to facilitate profitable stock trading, which has dragged the stock market into territory. negative, analysts added. In addition, an increase in global crude oil prices to the upper level of $94 a barrel from $72, has put more pressure on the Sri Lankan economy due to the current currency crisis, market analysts pointed out.

Against this backdrop, the stock market started on a positive note but then turned negative, especially on the top-notch counters. Both indexes have fallen. The All-Share Price Index fell 106 points and S and P SL20 fell 16.8 points.

The turnover amounted to Rs 3.2 billion with a single visit. The crossing was recorded by Melstacorp, which crossed 390,000 shares at Rs 26.6 million, with its shares trading at Rs 56.

In the retail market, the top seven companies that primarily contributed to revenue were; Commercial Leasing and Finance Rs 756 million (16.9 million shares traded), LOLC Finance Rs 460 million (17.2 million shares traded), Browns Investments Rs 229 million (16.2 million shares traded), Expolanka Rs 163 million (503,000 shares traded), Sinhaputhra Finance Rs 142 million (4.2 million shares traded), Softlogic Life Insurance Rs 102.6 million (738,000 shares traded) and Softlogic Holdings Rs 68.8 million ( 953,000 shares traded). During the day, 108 million stock volumes changed hands in 36,000 stock trades.

The index then pared its early gains and slipped into negative territory as investors made quick profits, capitalizing on recent sharp price increases in some heavyweight meters. However, activity continued at subdued levels with daily turnover at its lowest level in four months. The breadth of the market ended lower with 78 price increases and 121 declines, market watchers said.

Foreigners are said to have recorded a net outflow of Rs. 42 million, while their stake increased slightly to 2.7% of turnover (2.3% the previous day). According to reports, high net worth and the participation of institutional investors have been noted in Royal Ceramics, Softlogic Life Insurance and LOLC Holdings.

Mixed interest was seen for Expolanka Holdings, Vallibel Finance and Sunshine Holdings, while retail interest was noted for non-voting SMB Leasing, Dialog Axiata and Browns Investments. Vallibel Finance’s share price gained Rs. 3.50 to close at Rs. 55.

The capital goods sector was the second largest contributor to market revenue (thanks to Royal Ceramics), while the sector index increased by 0.06%. Royal Ceramics’ share price recorded a gain of 60 cents to close at Rs. 71.90. In addition, First Capital Holdings and First Capital Treasuries announced the stock split of one existing stock into four new shares.

Yesterday, the US Dollar was quoted at Rs 202.52, which was the Central Bank’s controlled price. The Central Bank has imposed a cap of Rs 203 per US dollar. However, market sources said the actual price would be higher than Rs 250.

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