CIABOC Head’s resignation seen as rattling stock market
By Hiran H.Senewiratne-October 17, 2016, 7:29 pm
The performance of the Colombo Stock Exchange (CSE) turned lack lustre once again as current national political tensions aggravated with the Head of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) Dilrukshi Dias Wickremesinghe tendering her resignation yesterday to the authorities, against the backdrop of controversial remarks by President Maithripala Sirisena on CIABOC, the FCID and the CID.
"She sent her letter of resignation to the President today, CIABOC Commissioner Neville Guruge had told the media and this has resulted in the CSE performing poorly as most investors are standing on the sidelines and observing the situation, stock market analysts said.
Colombo Stock Brokers Association president Ravi Abyesuriya told The Island Financial Review that these political tensions are "pretty bad for the market."
"When such political situations prevails it is very bad for the market because investors look for political and economic stability prior to investing, Abysesuriya said.
Yesterday, CSE turnover reached a mere Rs 292.4 million. The number of shares traded during the day were 23,703,368.
According to CSE sources, the All Share Price Index was down by 28.79 points and S and P SL-20 down by 15.18. There was one crossing in the form of Expolanka of Rs 71.5 million.
Candor Equities Marketing Manger Buddhike Payoe told The Island Financial Review that other than the single crossing, the main contributors to the day's turnover were JKH Rs 36.3 million and Grain Elevators Rs 12.3 million.
Payoe said that the ASPI reached 6,453.75 points but added that when stock prices come down it is an opportunity for interested investors to buy stocks with a future market potential.
"Today the market was brought down by lower participation of institutional and retail investors. Most of them seem to be waiting for government policy updates, specially the upcoming budget, Asha Phillip Stock Brokers Research Analyst A. Visahan said.
"We can expect this trend to continue for a few more days. Currently we don’t see any political uncertainty in the country, he said.
"The impulse of the forthcoming US presidential election and speculations on US interest rates are also influencing investor behavior in emerging markets. These conditions compel foreign investors to limit their activities, he said.
"The economic slowdown in the region also affects market activities, Visahan added.
Meanwhile, JKSB said of yesterday's CSE trading:
ASPI: 6,452.69 (-29.85 pts; -0.46%); Val T/O: Rs. 292mn (US$1.99mn); Vol T/O: 23.7mn; Trades: 3,629
Advance/decline ratio: 44/120 ; Top gainer: KAHA.N (+11.69%); Top loser: ATL.N (-11.11%)
Highlights:
• The ASPI saw declines amid turnover levels that touched a six week low. Activity in the diversified and manufacturing sectors led market turnover including a crossing seen in EXPO. Trading in EXPO amounted to 28% of total turnover.
• Diversified Holdings was the most actively traded sector (-0.56%)
• Plantations was the best performing sector (+0.43%), supported by gains on MAL (+7.41%)
• Footwear & Textiles was the worst performing sector (-2.53%), supported by gains on ODEL (-2.78%)
