‘Bond scam and political uncertainty dampening factors in share market’
Posted on January 18th, 2018
By Hiran H.Senewiratne Courtesy The Island
Share prices have declined in the banking and financial sector counters during the last couple of days and this trend will continue for some time. Meanwhile, the bond scam and the country’s political uncertainty are having a dampening effect on the CSE, stock analysts said.
Quarterly profits of many companies are likely to drop, analysts added. Up to now only one company has issued their quarterly results, but this entity lacks attractiveness for investors, stock market sources said.
Consequently, the All Share Price Index went down by 29.23 points and S and P SL20 index moved down 34.97 points. However, the day’s turnover stood at Rs. 1.7 billion with three crossings.. Those crossings were; Sampath Bank 1.12 million shares crossed to the tune of Rs. 351 million at a per share value of Rs. 315 , JKH 250,000 shares crossed for Rs. 40 million at a per share value of Rs. 160 and Access Engineering PLC one million shares crossed for Rs. 23 million at a per share value of Rs. 23.
In the retail market, companies that mainly contributed to day’s turnover over were, Commercial Bank Rs. 342 million (2.52 million shares traded), JKH Rs. 310 million (1.94 million shares traded) and Sampath Bank Rs. 36.4 million (115,000 shares traded).
“Things were a bit slower and the trend is continuing, market analysts said.
“Market is coming towards a correction rather than profit-taking as the latter lasted far more than expected. However, foreigners are still on the buying side., a market analyst said. Yesterday 13 million share volumes changed hands in 2300 transactions.
.It is said that foreigners had net bought Rs. 18.5 billion worth equities in 2017 and Rs. 633.5 million equities in 2016
Meanwhile, JKSB reporting on the CSE said:
ASPI: 6,410.11 (-29.23 pts; -0.45%); Val T/O: Rs. 1.27bn (US$8.3mn); Vol T/O: 13.0mn; Trades: 2,300
Advance/decline ratio: 51/86; Top gainer: PCP.N (+100.00%) ; Top loser: SEMB.X (-33.33%)
Highlights:
• The ASPI ended lower amid healthy turnover levels. SAMP, JKH, and COMB dominated market activity including a crossing also seen in AEL. Trading in SAMP amounted to 31% of total turnover.
• Banks, Finance, & Insurance was the most actively traded sector (-0.63%)
• Plantations was the best performing sector (+0.75%), supported by gains on HAPU (+3.33%)
• Services was the worst performing sector (-3.13%), dragged down by declines on KZOO (-2.13%)