Stock market’s struggle persists

Tuesday, 24 July 2012 01:55 - - {{hitsCtrl.values.hits}}

The bearish stock market’s struggle persisted yesterday despite expectations of a rebound in sentiments following the dialogue between capital market stakeholders and President Mahinda Rajapaksa on Friday.

The benchmark ASI closed six points down (0.13%) and MPI by over 23 points (0.5%) whilst S&P Sri Lanka 20 dipped by six points. Turnover was a modest Rs. 322 million though dominated by blue chips John Keells Holdings (Rs. 112 million on account of foreign buying with Captains on the selling side, and Carson Cumberbatch (Rs. 14 million with EPF continuing to collect available quantities), whilst Central Finance (Rs. 77 million) saw a related party transfer between Perpetual Capital and Thurston Investments.

Brokers said sentiments hadn’t recovered despite the Presidential forum, suggesting the market was awaiting some changes, though they didn’t want to be specific.

Any progress will be known only when Treasury Secretary Dr. P.B. Jayasundera reconvenes stakeholders for a follow up discussion.

Others said yesterday’s performance confirmed that there was no change in the confidence level in the market whilst it also reiterated the President’s forum was inconclusive except ending as a talk shop. “It may be too early to conclude, but judging by yesterday’s performance, the market failed to rebound,” they added.

Some analysts even went to the extent of saying investors were waiting for the market to fall further before collecting quantities.