Stimulus from reserve buffers
By Hiran H.Senewiratne
Trading at the Colombo Stock Exchange (CSE) was bullish throughout yesterday due to turnover surpassed Rs 14 billion and the All Share Price Index recorded the highest ever 9,163 points in the stock market history, stock market analysts said. During the day both indices moved upwards. All Share Price Index up by 160.5 points and S and P SL20 up by 75.9 points. Main contributing factor to reach All Share Price to the historic highest level and the turnover to touch Rs 14.65 billion due to the significant improvement in the investor sentiment as Sri Lanka was able to secure US$ 1.3 billion worth of foreign reserves that received from a Special Drawing Rights (SDR) allocation of International Monetary Fund (IMF), a disbursement under the Currency Swap Arrangement with the Bangladesh Bank and another loan from Chinese Development Bank.The bourse appeared challenging as Expolanka Holdings on the previous day dislodged LOLC Holdings yet again to reclaim the most valued status, stock market analysts said.
Expolanka and Browns Investments were the main contributors yesterday for the All Share Price Index. Those two companies’ share prices were also appreciated. Expolanka Holdings share price increased from Rs 167.75 to Rs 181, which was Rs 13.25 or eight percent increased and Browns Investments share price appreciated from Rs 10.40 to Rs 11.50, which was 11 percent or Rs 1.10 appreciation.
Turnover stood at Rs 14.6 billion with five crossings. Those crossings were reported in HNB where five million shares crossed for Rs 675 million and its share price traded at Rs 135, Royal Ceramic 2.8 million shares crossed for Rs 112.8 million and its share price traded at Rs 41, HNB (Non Voting) 837,000 shares crossed for Rs 104.6 million and its share price traded at Rs 125, Sampath Bank one million shares crossed for Rs 51.5 million and its share price traded at Rs 51.50 and Commercial Bank 500,000 shares crossed for Rs 42.75 million and its share price traded at Rs 85.50.
In the retail market top five companies that mainly contributed to the turnover were Expolanka Rs 4.7 billion (26 million shares traded), Browns Investments Rs 2.9 billion (257 million shares traded), Hayleys Rs 996 million (8.4 million shares traded), LOLC Rs 674 million (1.1 million shares traded), Royal Ceramic Rs 670 million (15.2 million shares traded). During the day 484 million share volume changed hands in 66740 transactions.Since early last week investors have ignited a battle between Expolanka and LOLC for the number one position, with each holding a forte for a day only. Analysts claimed Expolanka remains solid and on demand given the large volumes traded since early last week. It retaining the most valued status for a second day running today would prove this view. Others believe Expolanka is now overpriced. Nevertheless, the stock market, which is on an all-time high, has developed a craving for companies with strong dollar earnings and both Expolanka and LOLC, as well as Hayleys and several Group companies are being sought after for the same reason.