By Paneetha Ameresekere
Ceylon Finance Today: Market activity on Friday was boosted due to mix of government funds, controversial high networth individuals and retailers trading, boosting the benchmark ASPI index at Friday's (28 November) trading, though the more sensitive S&P SL 20 Index declined due to continued political uncertainty, market sources told Ceylon FT.
The ASPI gained by 0.53% to 7,153.90 points, while the S&P marginally decreased by 0.15% to 3,971.02 points on a Rs 2.08 billion turnover.
"However, the market will go through the roof if it feels that former UPFA Minister and SLFP General Secretary Maithripala Sirisena will win the 8 January poll," sources told Ceylon FT.
Meanwhile, the number of shares traded declined by 19.9% to 58,521,701 shares on Friday.
ASPI's gains would have been muted and the S&P's decline sharper, if not for spurious increases by the bourse's 2nd largest capitalized stock CTC and Cargills (28th), where their share prices (SPs) increased by 0.09% and 3.13% to Rs 1,091 and Rs 154 on share volumes (SVs) of 522 and 102 and on turnovers of Rs 568,112.88 and Rs 15,789.80 respectively.
Similar spurious trades have been the hallmark of the bourse in recent times.
Due to the political uncertainty caused after Sirisena announced his candidature on 21 November, the ASPI has declined by 5% and the S&P by 5.3% by Friday.And the other was the 18th largest capitalized stock Access with Rs 390 million on a 10.7 million SV. Access closed up 3.36% to Rs 36.90 a share.
The bourse saw 153 gainers as opposed to 44 losers. The bourse saw a Rs 323.8 million net foreign inflow (NFI), taking NFIs in year-to-date to Rs 20.7 billion. NFIs were led by Access (Rs 285.7 million).
Meanwhile, a dissection of money market statistics showed that only a mere Rs 278.58 million more were parked in CBSL's standing deposit facility (SDF) and repo windows on a net basis, compared to the excess liquidity facility at the beginning of the day on Friday and by the end of that day, discounting excess liquidity generated by CBSL's purchase of Treasury bills.
This net excess may be due to inflows. With inflows to the bourse settled after two market days of trading from the date of transaction, part of that amount would have had been due to the bourse enjoying a Rs 400.7 million NFI on Wednesday, while the balance may have had been dissipated due to CBSL's defence of the rupee and banks having to square CBSL's six per cent statutory reserves' ratio (SRR) equivalent to their deposit holdings by Friday.
This SRR has to be met by a combination of cash and banks' vault deposits (amounting to a minimum of two per cent of SRR and a maximum of four per cent which however don't earn interest to banks, unlike when excess liquidity is parked on CBSL's SDF and repo facilities.
www.ceylontoday.lk
Ceylon Finance Today: Market activity on Friday was boosted due to mix of government funds, controversial high networth individuals and retailers trading, boosting the benchmark ASPI index at Friday's (28 November) trading, though the more sensitive S&P SL 20 Index declined due to continued political uncertainty, market sources told Ceylon FT.
The ASPI gained by 0.53% to 7,153.90 points, while the S&P marginally decreased by 0.15% to 3,971.02 points on a Rs 2.08 billion turnover.
"However, the market will go through the roof if it feels that former UPFA Minister and SLFP General Secretary Maithripala Sirisena will win the 8 January poll," sources told Ceylon FT.
Meanwhile, the number of shares traded declined by 19.9% to 58,521,701 shares on Friday.
ASPI's gains would have been muted and the S&P's decline sharper, if not for spurious increases by the bourse's 2nd largest capitalized stock CTC and Cargills (28th), where their share prices (SPs) increased by 0.09% and 3.13% to Rs 1,091 and Rs 154 on share volumes (SVs) of 522 and 102 and on turnovers of Rs 568,112.88 and Rs 15,789.80 respectively.
Similar spurious trades have been the hallmark of the bourse in recent times.
Due to the political uncertainty caused after Sirisena announced his candidature on 21 November, the ASPI has declined by 5% and the S&P by 5.3% by Friday.And the other was the 18th largest capitalized stock Access with Rs 390 million on a 10.7 million SV. Access closed up 3.36% to Rs 36.90 a share.
The bourse saw 153 gainers as opposed to 44 losers. The bourse saw a Rs 323.8 million net foreign inflow (NFI), taking NFIs in year-to-date to Rs 20.7 billion. NFIs were led by Access (Rs 285.7 million).
Meanwhile, a dissection of money market statistics showed that only a mere Rs 278.58 million more were parked in CBSL's standing deposit facility (SDF) and repo windows on a net basis, compared to the excess liquidity facility at the beginning of the day on Friday and by the end of that day, discounting excess liquidity generated by CBSL's purchase of Treasury bills.
This net excess may be due to inflows. With inflows to the bourse settled after two market days of trading from the date of transaction, part of that amount would have had been due to the bourse enjoying a Rs 400.7 million NFI on Wednesday, while the balance may have had been dissipated due to CBSL's defence of the rupee and banks having to square CBSL's six per cent statutory reserves' ratio (SRR) equivalent to their deposit holdings by Friday.
This SRR has to be met by a combination of cash and banks' vault deposits (amounting to a minimum of two per cent of SRR and a maximum of four per cent which however don't earn interest to banks, unlike when excess liquidity is parked on CBSL's SDF and repo facilities.
www.ceylontoday.lk
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