CSE turnover exceeds Rs. 3 billion as Multi-Currency Board takes shape

By Hiran H.Senewiratne

The CSE will render operational its Multi-Currency Board (MCB), probably next month. At present the CSE has signed an agreement with its Maldives counterpart to this effect and several Maldives companies are interested in listing on the board, the CSE said.

The CSE has amended its Listing Rules to facilitate the listing of shares by foreign companies on the MCB of the CSE, under the Alternate Market Segment, CSE's  Head of Marketing, Niroshan Wijesundara told The Island Financial Review. "With the coming into operation of the MCB several Maldivian companies are interested in listing on the CSE but we are in the process of canvassing them to get them listed with us, he said. 

The prospective companies should list in their own country first and it is only after that, that they will be allowed to be listed in the CSE, Wijesundara added. In this regard, the CSE has also amended the ATS Rules and the CDS Rules to facilitate the MCB.As per the amended Listing Rules, a foreign entity may list its shares, denominated in a currency approved by the Central Bank for the MCB of the CSE. Investing and trading in such shares will be permitted only to non-resident investors who operate through a Custodian Bank of the CDS.

"We will be canvassing other countries to list on the new board, Wijesundara  explained. 

Wijesundera said that throughout the year the CSE recorded a net foreign outflow but things are tending to improve because yesterday the market touched the highest turnover for this year, which is Rs. 3.35 billion.

According to stock market analysts, both indices indicated mixed reactions yesterday, ie, the All Share Price Index was down by 3.52 points and S and P SL20 was up by 4.34 points. With the turnover touching Rs. 3.35 billion, there were three crossings.

Those crossings came from JKH, which crossed 8.3 million shares to the tune of Rs. 1.3 billion, per share value Rs. 156, Asiri Hospitals PLC 30 million shares crossed to the tune of  Rs. 660 million, per share value Rs. 22 and Cargills 145,664 shares crossed for Rs. 29.1 million, per share value Rs. 200.

In the retail market companies that mainly contributed to the day's turnover were: CT Holdings Rs. 744.70 million (4.3 million shares traded), HNB Rs. 307.6 million (1.5 million shares traded), Hemas Rs. 140 million (1.6 million shares traded), CIC (Non Voting) Rs. 20.1 million (831,000 shares traded) and Commercial Bank Rs. 24 million (216,000 shares traded). During the day 52.1 million share volumes changed hands in 2834 transactions.  

 The market was dominated by institutional investors and off trade transactions/crossings.   Trade uncertainty weighed on Asian stocks Monday at the start of a week that sees crunch China-US talks take place in Beijing aimed at averting fresh tariff escalations.Mainland Chinese markets reopened from their week-long Lunar New Year break to renewed concerns over the trade row and a series of bearish global growth forecasts.Top US economic officials travel to the Chinese capital this week for the third round of talks on Thursday and Friday, where preparatory talks among deputies were due to start Monday.Failure to agree a deal between the two economic superpowers before March 1 would see punitive US duties on $200 billion in Chinese goods more than double.

Meanwhile, JKSB adds -

ASPI: 5,960.62 (-3.52 pts; -0.06%); Val T/O: Rs. 3.35bn (US$18.9mn); Vol T/O: 52.1mn; Trades: 2,834

Advance/decline ratio: 78/75; Top gainer: TFC.X (+16.67%) ; Top loser: BLUE.X (-33.33%)


=The ASPI ended marginally lower amid turnover levels that exceeded Rs.3bn mainly due to a Rs.1.3bn JKH crossing. CTHR and ASIR witnessed active trading with crossings also seen in CARG. Trading in JKH amounted to 39% of total turnover.

=Diversified Holdings was the most actively traded sector (+0.59%)

=Footwear & Textiles was the best performing sector (+2.12%), supported by gains on ODEL.N (+5.19%)

=Construction & Engineering was the worst performing sector (-1.66%), dragged down by declines on KAPI.N (-6.47%)

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