CSE on the uptick despite October’s inflation hike

By Hiran H.Senewiratne

CSE activities were bullish and positive yesterday despite Sri Lanka’s nationwide inflation in October 2021, determined under the National Consumer Price Index (NCPI), rising to 8.3 from 6.2 per cent recorded in September, stock market analysts said.

The Department of Census and Statistics released their report, where NCPI for all items for the month of October 2021 increased to 150.6 from 147.5 during the previous month. The inflation for the month of October 2021 was mainly due to the higher price levels prevailing in both food and non-food groups.

Further, LOLC Holdings off the floor Rs 41 billion transactions that occurred when LOLC Holdings last week completed the transfer of the shares of three finance companies to LOLC Ceylon Holdings Ltd. (LOCH) gave some impetus to the stock market, analysts said.

Amid those developments, substantial gains were recorded in LOLC Holdings, Bogala Graphite, ACL Cables, Kelani Cables, Watawala Plantations and Central Industries. Both indices moved upwards. The All- Share Price Index went up by 111.36 points and S and P SL20 rose by 57.62 points. Turnover stood at Rs 6.6 billion with two crossings. Those crossings were reported in LOLC Holdings, where 140,000 shares crossed to the tune of Rs 115 million, its shares traded at Rs 811 and Browns Investments 150,000 shares crossed to the tune of Rs 30.6 million, its shares traded at Rs 204.

In the retail market top seven companies that mainly contributed to the turnover were, LOLC Holdings Rs 807 million (968,000 shares traded), Browns Investments Rs 601 million (52.8 million shares traded), LOLC Finance Rs 546 million (20.1 million shares traded),Bogala Graphite Rs 536 million (four million shares traded), Expolanka Holdings Rs 513 million (2.2 million shares traded), ACL Cables Rs 278 million (3.3 million shares traded) and Sierra Cables Rs 211 million (14.7 million shares traded). During the day LOLC gained by 16.4 or Rs 126 per share. Its share price moved to Rs 907 from Rs 768.

During the day the stock market witnessed a price appreciation in the capital goods sector. Bogala Graphite share prices appreciated by 24 percent or Rs 27.75. Its share price moved to Rs 144.25 from Rs 116.25, ACL Cables share price moved 11 per cent or Rs 8.50. Its share price moved to Rs 86.60 from Rs 78.10, Central Finance recorded a Rs 20 or 11 per cent gain. Its share price shot up to Rs 203.75 from Rs 183.75 and Kelani Cable’s shares appreciated by Rs 74 or 25 per cent. Its share price started trading at Rs 300 and at the end of the day it shot up to Rs 374.

Further, plantation sector counters also made significant gains in their prices. Main gainers were Agalawatta Plantation, whose share price appreciated by Rs 2.90 or eight per cent. Its shares started trading at Rs 37.30 and at the end of the day they shot up to Rs 40.70 and Watawala Plantations share price appreciated by Rs 9.80 or 10 per cent. Its share price shot up to Rs 109.50 from Rs 99.70. During the day 216 million share volumes changed hands in 4800 transactions.

Further, Sarvodaya Development Finance oversubscribed their share issue on the first day itself.

Yesterday, the US dollar was quoted at Rs 202.41, which was the controlled price of the Central Bank.

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