Super September persists; ASPI likely to turn YTD positive this week

• ASPI up 33.4% since market’s reopening in mid-May; down 4.4% YTD
• Expolanka sees over 18% of its stake traded so far in Sept., price up 83%
• CTC regains status as most valuable stock
• Net foreign selling tops Rs. 38 b YTD

The emphatic signs of super September continued at the Colombo Bourse last week with All Share Price (ASPI) gaining with expectations that it will turn positive year to date having reduced the dip to 4.4% as of Friday following the gain of 1,467 points or 33.4% since market’s reopening following COVID-induced shutdown.

During the week, the ASPI gained 2.42%, whilst the S&P SL 20 dropped by 1.21%, whilst the market recorded an average daily turnover of Rs. 2.7 billion, slightly lower than Rs. 3 billion plus achieved in the previous week.

“Bourse ended in the green territory for the second consecutive session sustaining ‘Super September’ drive alive,” said First Capital on Friday. “Index recorded a mixed reaction till mid-day and thereafter experienced a continuous uptrend for the rest of the session and closed at 5,859 with an advance of 48 points,” it added.

The market continues to see foreign selling with net outflow topping the Rs. 38 billion mark to finish last week at Rs. 38.5 billion. Capital market promoters are taking strength from the fact that locals have had the financial capacity and the appetite to absorb the foreign selling.  

Expolanka Holdings which reported strong first quarter earnings continued to dominate trading for yet another week with its price having gained by 83% to Rs. 5.10 during the month so far to Rs. 11.20. Nearly 360 million of its shares or 18% have traded so far in September for nearly Rs. 4 billion. The stock is being favoured by individuals including several high net worth ones as well as retailers and select institutions. 

Another feature last week was Ceylon Tobacco regaining its status as the most valuable stock with a market capitalisation of Rs. 179.62 billion surpassing JKH whose value was Rs. 179.19 billion and which rose to the top a fortnight ago.