Union Assurance share-price jump gives Bourse some impetus

Hiran H.Senewiratne

The share price of Union Assurance shot up by more than 6 percent or Rs 17.70 on the Colombo Stock Exchange (CSE) which was able to keep the market on a little positive note. If not for that price appreciation, the Market was likely to move downward. At the end of the day Union Assurance per share started trading at Rs 307.90 consequently its share value moved up to Rs 325.90 or 17.70 due to certain internal transactions, stock market analysts said.

However, Lanka IOC share prices did not appreciate despite fuel price hike in their shed, although its share price increased after the previous fuel price hike.

Amid those developments both indices showed mixed reactions ie All Share Price moved up by 1.31 points  and S and P SL20 down by 6.31 points. The day's turnover stood at Rs 337.3 million with three crossings. Those crossings were Central Finance crossed 543,000 shares for Rs 52.7 million per share price Rs 97, HNB 200,000 shares crossed for Rs 45.2 million per share value Rs 226 and Commercial Credit 669,000 shares crossed for Rs 21.7 million per share value Rs 32.50.

In the retail market companies that mainly contributed to day's turnover were Commercial Bank Rs 27 million (219,000 shares traded), Central Finance Rs 26.7 million (275,000 shares traded) and HNB Rs 26.6 million (118,000 shares traded). During the day 10.4 million share volumes changed hands in 3021  transactions.Further, CSE shares fell to one-week closing low on Monday as foreign investors sold blue chips such as conglomerate John Keells Holdings Plc.

"Today also, foreign selling was there and it impacted the market. Foreigners are exiting with the dollar strengthening," said stock market analysts said.

"Local investors are worried over continued foreign selling on the back of dollar strengthening globally and they are on the sidelines."

Analysts said investors also waited for cues from the national budget which the government is set to unveil in November.

Foreign investors sold a net Rs  112.1 million of shares on Monday, extending the year-to-date net foreign outflow to more than Rs 4.5 billion  worth of shares.

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