CSE in its most convincing performance in recent months: indices gain sharply

By Hiran H. Senewiratne

The CSE yesterday produced its most convincing performance in recent months with both indices gaining sharply on high turnover reflecting improved investor sentiment. It is noted that the market was extremely bullish and driven by mainly blue chip counters, especially Expolanka Holdings, stock market analysts said.

The shares rose over 1.5 per cent within the first hour of trading on the hopes of economic stability following President Ranil Wickramesinghe’s policy statement yesterday in parliament. Apart from that, the market had gained for five straight sessions with the generation of June quarter earnings reports and as days draw near to a possible IMF deal, market analysts added.

The main All -Share Price index gained 1.75 per cent or 172 points to 8,080, while the market crossed the 8,000 psychological benchmark after two-months. Most liquid index S&P SL20 climbed 3 per cent or 105 points at the end of the day. Turnover stood at Rs 2.6 billion with a single crossing. One million shares of JKH shares crossed to the tune of Rs 119 million; its shares traded at Rs 119.

In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 600 million (3.1 million shares traded), Lanka IOC Rs 268 million (2.6 million shares traded), ACL Cables Rs 202 million (4.4 million shares traded), LOLC Finance Rs 178 million (22.1 million shares trade), Browns Investments Rs 158 million (21.3 million shares traded), LOLC Holdings Rs 77.7 million (188,000 shares traded) and JKH Rs 75.2 million (630,000 shares traded). During the day, 123 million share volumes changed hands in 29000 transactions.

It is said following several weeks of moderate buying, the market witnessed buoyant momentum on Tuesday as retail and blue chip investors stepped up buying, targeting deep discounted stocks across sectors. Expolanka Lanka Holdings drove the market along with other bluechip companies. Its share price moved up by Rs 17.50 or 10 per cent to Rs 199.75 from Rs 174.75.

It is said foreigners recorded a net outflow of Rs. 16 million, while their participation increased to 9.7 per cent of turnover (previous day 1.9 percent). Net foreign buying topped at Rs. 7.8 million, while net foreign selling topped in at Rs. 16 million.

It is said that results reported by dollar earnings and plantation counters also fuelled investor confidence. In response to that, the index started off on a solid footing and maintained its steep upward trajectory throughout the session and closed for the day at a two-months high of 8080, gaining 105 points.

Main contributors for the stock market were Expolanka Holdings (32.9 per cent), LOLC Finance (16.7 per cent), LOLC Finance (11.9 per cent), Hayleys (10.4 per cent, Hayleys (10.4 per cent) and Royal Ceramic (9.5 per cent).

Yesterday, the Central Bank’s US dollar buying rate was Rs 357.22 and the selling rate Rs 368.49. The rupee is a bit stable against the dollar due the Central Bank’s prudent monetary policies, economists said.


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