Cheer over semi-final victory, high GDP growth absent in stock market

Overnight Sri Lanka clinched a chance to play at World Cup final and officially second highest ever GDP growth achievement was made public but perhaps turning unsporty there was not much cheer in the stock market yesterday.

Early morning trading was bizarre with decline persisting but a rebound in sentiments helped a worse ending as the benchmark ASI finished down 0.2% and Milanka Index almost unchanged.

“Lack of buying interest led the indices to decline amid low turnover levels with trades centered on banking, finance and manufacturing counters,” John Keells Stock Brokers said. Turnover was only Rs. 1.1 billion.

NDB Stockbrokers agreed that a buying session witnessed towards the end could not recover the initial dip in indices.

“Conditions are still lackluster as expected. However, the buying momentum witnessed in the latter half is expected to continue tomorrow focusing on blue chip counters,” the broker added.

Bank, Finance & Insurance sector was the main contributor to the market turnover (due to Central Finance, Union Bank and HNB Bank-(X)) with the sector index decreasing 0.16%. Central Finance was the main contributor to the market turnover as retail investors renewed their interest on the stock. The share price increased by Rs 74.10 (6.56%) and closed at Rs 1,210.

Union bank saw a dip today after making substantial gains on the first day of trading. John Keells made gains to boost MPI to a certain extent.

Manufacturing sector also contributed to the market turnover (due to Royal Ceramics), with the sector index decreasing 0.56%. People’s Merchant Bank attracted investors after announcement about an acquisition of one of its subsidiaries by Capital Alliance Holdings which is still subject to regulatory approval.

Investors reacted positively to Janashakthi Insurance after an interim dividend announcement of Re. 1 per share. Its’ share price gained by 60 cents to close at Rs. 16.60.

Best Performing Sector was Construction & Engineering (+0.38%) whilst the worst was Power & Energy (-1.22%).