Janashakthi exceeds global standards in Life Insurance, over 100 MDRT qualifiers – The Island.lk

By Hiran H.Senewiratne

The CSE surrendered its early gains to close marginally lower yesterday as looming macro and micro economic uncertainties weighed on investor sentiment amid a significant drop in blue-chip counters, stock market analysts said.

Despite global tensions with regard to the Russian- Ukraine issue easing out, since Russia is reportedly looking for a diplomatic intervention, the local micro economic front did not seem to facilitate profitable stock market operations, which factor dragged the bourse to negative territory, stock market analysts added. Moreover, an increase in world crude oil prices to the higher level of US $ 94 per barrel from US $ 72, put more pressure on the Sri Lankan economy due to the ongoing currency crisis, market analysts pointed out.

Against this backdrop, the stock market started on a positive note but later turned negative, especially with regard to blue-chip counters. Both indices moved downward. The All- Share Price Index went down by 106 points and S and P SL20 declined by 16.8 points.

Turnover stood at Rs 3.2 billion with a single crossing. The crossing was recorded from Melstacorp, which crossed 390,000 shares to the tune of Rs 26.6 million, its shares traded at Rs 56.

In the retail market, top seven companies that were mainly contributed to the turnover 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 share volumes changed hands in 36000 share transactions.

The index pared early gains thereupon and slipped into negative territory as investors realized quick profits, capitalizing on recent sharp price increases in select heavyweight counters. However, activity continued at moderate levels with daily turnover coming in at a four-month low. The breadth of the market ended negative with 78 price gainers and 121 decliners, market watchers said.

It is said that foreigners recorded a net outflow of Rs. 42 million, while their participation increased marginally to 2.7 per cent of turnover (previous day 2.3 percent). Reportedly, high net worth and institutional investor participation was noted in Royal Ceramics, Softlogic Life Insurance and LOLC Holdings.

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

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics), while the sector index increased by 0.06 per cent. The share price of Royal Ceramics recorded a gain of 60 cents to close at Rs. 71.90. Further First Capital Holdings and First Capital Treasuries announced subdivision of shares from one existing share into four new shares.

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