By Hiran H.Senewiratne
The CSE yesterday began on a positive bullish note with sharp gains in both indices, propelling them to an all – time high amid robust turnover. It is said that the All-Share Price Index reached the 11796 mark or 116 points, stock analysts said.
With the extending of the import restrictions in the recent budget, local manufacturing sector counters noted some positive gains, especially in the tile sector. Amid those developments, throughout the day, the stock market was positive and the rally was driven by Expolanka Holdings, which surpassed Rs 700 billion with Rs 737 billion in market capitalization, which accounts for 14 per cent of the overall market capitalization in the CSE, analysts said.
The Expolanka share price appreciated by Rs 26.75 or eight points. Its share price shot up to Rs 377 from Rs 300.25, thus contributing 117 points to the All- Share Price Index. Profit- takings were witnessed in LOLC Group of companies but did not happen in a significant manner, market analysts added.
The All- Share Price Index gained by 2.00 per cent or 116 points and the S&P SL20 shot up by over two per cent or 48.6 points. Turnover improved to Rs. 8.5 billion, involving a whopping 533 million shares with five crossings. Those crossings were reported in Chevron Lubricants, which crossed 277,000 shares to the tune of Rs 38 million and its shares traded at Rs 108, Expolanka Holdings 80000 shares crossed to the tune of Rs 28.6 million; its shares traded at Rs 358, Resus Energy 750,000 shares crossed for Rs 26.6 million; its shares fetched Rs 35, Lanka IOC 600,000 shares crossed for Rs 23.8 million and its shares traded at Rs 39.70 and Windforce 1.3 million shares crossed for Rs 23.3 million, its shares traded at Rs 18.70.
In the retail market five companies that mainly contributed to the turnover were; Expolanka Holdings Rs 1.8 billion (4.9 million shares traded), Browns Investments Rs 635 million (44.7 million shares traded), Resus Energy Rs 457 million (12.6 million shares traded), ACL Cables Rs 358 million (3.5 million shares traded), Hayleys PLC Rs 335 million (2.8 million shares traded), Vallibel One Rs 322 million (four million shares traded) and LOLC Holdings Rs 322 million (273,000 shares traded).
It is said the Capital Goods sector was the top contributor to the market turnover (due to Brown & Company), while the sector index gained 2.11 per cent. Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), while the sector index increased by 3.47 per cent. During the day 533 million share volumes changed hands in 58000 transactions.
Moreover, Kapruka and Co-operative Insurance will go for IPOs. Kapruka will start their initial offering to the public on December 22. The company will issue 32.8 million shares at a share value Rs 15.40 to raise Rs 5.5 million. With those funds they expect to expand, develop and upgrade infrastructure while launching a Kapruka digital platform. Co-operative Insurance will issue 166 million shares at a share price of Rs 3.60 to raise Rs 600 million. The objective of the IPO would be to expand and strengthen the asset portfolio, digital transformation of the business by leveraging IT and to construct a salvage yard at Ja-ela.
Yesterday, the US dollar rate was quoted at Rs 201.87, which was the controlled price set by the Central Bank to prevent price escalations in imported essential items. This artificial price suppression could negatively impact the economy. But a US $ one billion worth swap by the Indian government will give some economic relief in the short term, analysts said.
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