By Hiran H.Senewiratne
CSE daily trading for 2023 began on a positive note yesterday because investors are expecting the IMF loan to materialize soon, thereby enabling the country to attract direct foreign investments without any issue, Vice President, Softlogic Stockbrokers Eardly Kern said.
“If we get the IMF package, it will be a great opportunity to attract investments into the Port City and other ventures involving foreign direct investments, from this year onwards, Kern told The Island Financial Review.
Kern said shares gained in mid- day trade on the first day of 2023. The market has seen buying interest, fueled after the holiday season came to an end, he added.
“Buying interest has come in on retail and life insurance counters, after the comments made by the Central Bank Governor Dr Nandalal Weerasinge on interest rates coming down, analysts said.
Sri Lanka’s 12-month inflation in Colombo eased to 57.2 per cent in December 2022 from 61 per cent in November last year as prices began to stabilize after interest rates were allowed to go up and the exchange rate was pegged to around 360 to the US dollar, market analysts said.
Amid those developments both indices moved upwards. The All- Share Price Index went up by 19.94 points and S and P SL20 rose by 16.57 points. Turnover stood at Rs 1.8 billion with a single crossing. That crossing was reported in Agstar PLC, which crossed 15.5 million shares to the tune of Rs 246 million and its shares traded at Rs 16.
In the retail market top seven companies that mainly contributed to the turnover were, Softlogic Capital Rs 515 million (45.6 million shares traded), Softlogic Life Insurance Rs 281 million (3.1 million shares traded), JKH Rs 94.5 million (698,000 shares traded), Browns Investments Rs 86 million (12.2 million shares traded), LOLC Finance Rs 79.7 million (9.8 million shares traded), Lanka IOC Rs 64.2 million (314,000 shares traded) and First Capital Holdings Rs 58.8 million (1.9 million shares traded). During the day 130 million share volumes changed hands in 19000 transactions.
It is said that Softlogic Life Insurance and Softlogic Capital shares became active yesterday, which propelled the market to reach green territory.
Yesterday, the Central Bank- announced US dollar buying rate was Rs 360.40 and the selling rate Rs 371.60.