Wednesday May 15, 2024
Wednesday May 15, 2024
Thursday, 2 September 2021 00:00 - - {{hitsCtrl.values.hits}}
By Nisthar Cassim
The Colombo stock market reigned itself to an all-time high yesterday, and more importantly crossed the magical 9,000-point level and Rs. 4 trillion combined value, amid increased investor activity.
The stellar performance, despite COVID-19-induced setbacks and challenges to the economy and society, has dumbfounded critics and even surprised the more optimistic within the Government. However, analysts opined resilient private sector performance as evidenced by impressive corporate earnings as well as improved outlook, subdued interest rate regime and attractive valuations, were key factors for sustained upturn in the Colombo bourse.
The benchmark All Share Price Index gained by 165.5 points, or 1.84%, to close at 9,163 points. In the past few days, ASPI crossed the 9,000-point mark twice during intra-day, but didn’t manage to close beyond that level. Yesterday it did and touched an intra-day high of 9,202 points and closed 163 points above Tuesday.
The more active S&P SL20 Index gained by nearly 2% or 64 points to close at 3,428 points.
Year-to-date (YTD) ASPI is up 35.26 points, while in August it was the best gainer according to Softlogic Stockbrokers and second-best performer year-to-date. The S&P SL20 YTD gain was almost 30% yesterday.
Turnover was Rs. 14.6 billion (involving 484 million shares). The Colombo Stock Exchange (CSE) has seen over Rs. 10 billion turnover for five consecutive days and in six sessions out of eight so far. Turnover so far this week was Rs. 38.3 billion on top of a record Rs. 55 billion last week.
Market capitalisation amounted to Rs. 4.08 trillion, up 38% YTD or Rs. 1.12 trillion since end-2020. In the past eight market days, the combined value of CSE has risen by Rs. 416 billion.
The only negative factor is the sustained net foreign outflow as the YTD figure crossed the Rs. 38 billion mark and neared the next billion at Rs. 38.8 billion. This was after Rs. 849 million of net selling yesterday. Pro-market analysts opined foreign selling also meant locals have had the capacity absorbed.
Expolanka Holdings continued its meteoric rise, gaining yesterday by a further 7.6%, or Rs. 12.75, to close at Rs. 180.50. Expo saw 26 million of its shares change hands via 13,151 trades for Rs. 4.7 billion. Its market capitalisation was Rs. 352.8 billion.
Number two stock LOLC Holdings gained by 3%, or Rs. 18.25, to close at Rs. 610. It saw 1.1 million of its shares changing hands via 1,432 trades for Rs. 673.8 million. LOLC market capitalisation amounted to Rs. 289.8 billion.
Yesterday’s performance between the two heavy weights confirmed Expo as the undisputed leader, with a margin of Rs. 63 billion and by virtue of retaining the most valued status for two straight days thus far, after the top slot had shifted day-to-day between the two since early last week.
“Today’s market had a record turnover with mixed trading on all counters instead of trading on a few selected counters. That’s a very positive sign of sustainability of a vibrant market. Market PE is still less than 11 and there is enough room to grow,” said high net worth individual investor and prolific trader Nimal Perera.
SC Securities said, apart from Expolanka, other top turnover contributors were Browns Investments’ Rs. 2.96 billion with 261 million shares traded; Hayleys’ Rs. 996.5 million with 8.4 million shares traded; Royal Ceramics’ Rs. 783 million with 18 million shares traded; and HNB’s Rs. 670 million with 5 million shares traded.
Asia Securities said the indices continued their record-breaking rally as the ASPI, for the first time in history, closed above the much-awaited 9,000 level on the back of a strong buying spree in EXPO and BIL.
“The index opened the session on a strong note surpassing the 9,100 level with a 139-point gap up and sustained the momentum throughout the session backed up with strong buying support extended by retail and HNI investors,” Asia said.
The ASPI reached an intra-day high of 9,197 before stabilising in the range of 9,150-9,180 in the latter part of the session.
First Capital said the bourse ended in the green territory for the second consecutive day and breached the hurdle of 9,000 to set a new benchmark, while sustaining an over Rs. 10 billion turnover for the fifth straight session.
“Index surged by 139 points within the initial minute of trading and thereafter, displayed a gradual uptrend till mid-session, as traders were brimming with confidence after the index hit a fresh record above the 9,000 mark, eventually reaching an intraday high of 9,202. Thereafter, the index witnessed a sideways movement, closing at 9,163,” First Capital said.
It said turnover was led by the Transportation sector, followed by the Food, Beverage and Tobacco sector, accounting for a joint contribution of 55%.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Browns Investments and LOLC Holdings.
It said high net worth and institutional investor participation was noted in Hatton National Bank voting and non-voting and Royal Ceramics. Mixed interest was observed in Hayleys, LOLC Holdings and Dipped Products, while retail interest was noted in Browns Investments, Expolanka Holdings and SMB Leasing. The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), while the sector index gained 7.59%.
The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), while the sector index increased by 2.04%. The share price of Browns Investments gained Rs. 1.10 (10.58%) to close at Rs. 11.50.
Hayleys, Royal Ceramics and Hatton National Bank were also included among the top turnover contributors. The share price of Hayleys moved up by Rs. 9.25 (8.39%) to close at Rs. 119.50. The share price of Royal Ceramics recorded a gain of Rs. 4.10 (10%) to close at Rs. 45.10. The share price of Hatton National Bank declined by Rs. 1.50 (1.09%) to close at Rs. 136.25.
