Myland Developments Says CSE Listing a Great Opportunity to Run the Company in the Right Direction – The Island


With deteriorating foreign exchange reserves

By Hiran H. Senewiratne

The Colombo Stock Exchange (CSE) is in the final week of trading for 2021 on a negative note with both indexes falling although turnover has improved markedly, equity analysts said yesterday.

The market also recorded strong overseas net sales, increasing year-to-date net outflows (YTD) to over Rs. 51 billion with deteriorating foreign exchange reserves. Thus, the market has experienced significant profit-taking this year, particularly from foreign investors. But the current scenario has discouraged many investors, and as a result, they take profits and exit the market, market analysts said.

In contrast. With the depreciation of the rupee against the dollar, most counters in the export sector have performed relatively well, but counters in the banking and financial sector were taking a wait-and-see approach due to the current difficult foreign exchange reserve situation. that could lead to a debt service failure and make sovereign bond payments early next year, according to stock analysts

Yesterday, commercial banks did not react negatively despite the Central Bank (CBSL) ordering all licensed banks to sell 25% of US dollars to CBSL in a desperate measure to alleviate the currency shortage on the market. market and increase foreign currency.

According to the Central Bank amending the operational instructions on the extension of the incentive scheme for workers’ remittances from Monday, the governor of the Central Bank informed the CEOs of all licensed banks of the changes to mandatory sales of foreign exchange to CBSL and incentives offered under incentive programs.

Amid these developments, CSE’s business was negative throughout the day as the index-weighted Senkadagala Finance share price depreciated further, even after the previous day’s decline. Its stock price fell 25% or Rs 239. Its stock price started trading at Rs 964 and at the end of the day it suffered a depreciation of Rs 725 thus contributing to 50 points negative on the All Share Price Index.

As a result, both indices went down. All Share Price Index down 100.79 points and S and P SL20 down 2.94 points. The turnover amounted to Rs 5.67 billion with seven passages. These crosses were reported to Commercial Bank, which crossed 7.2 million shares for an amount of Rs 582.6 million and its stock price traded at Rs 78, Melstacorp 10 million shares crossed for Rs 550 million and its stock price traded at Rs 55, Citizens Developments Business Finance 2.9 million cross shares for Rs 506 million and its stock price traded at Rs 170, Nation Trust Bank 4.2 million cross shares for Rs 231 million and its stock price traded at Rs 54, LB Finance two million cross shares for Rs 136 million and its The share price traded at Rs 58, Amand Bank 20 million shares crossed for Rs 88 million and its stock price traded at Rs 4.40 and Lanka IOC 325,000 shares crossed for Rs 24.2 million and its share price traded at Rs 74.50.

In the retail market, the top seven companies that mainly contributed to turnover were Prime Lanka Residencies Rs 388 million (31.9 million shares traded), Expolanka Holdings Rs 375 million (one million shares traded) , SMB Leasing Rs 185 million (90.8 million shares traded), Myland Developments Rs 172.8 million (7.8 million shares traded), Lanka IOC Rs 157 million (two million shares traded), Royal Ceramic Rs 117 million (1.5 million shares traded) and Browns Investments Rs 114 million (eight million shares traded).

During the day, 317 million share volumes changed hands in 42,000 stock trades for the day. High net worth and institutional investor involvement is said to have been noted in Udapussellawa Plantations and Hapugastenne Plantations.


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