ASPI hits record high for fourth consecutive day

By Hiran H.Senewiratne

The CSE was on a high yesterday with both indices gaining by over 10 per cent and turnover hitting a healthy record due to strategic deals and an active retail market. The All- Share Price Index of the CSE surged 92.49 points to close at a record all- time high of 13.169.40 for the fourth consecutive day, stock market analysts said.

The stock market was positive throughout, driven by LOLC Group counters and other such blue-chip counters. One reason for the market to move up was the Central Bank decision to grant permission for Commercial Leasing and Finance and Sinhaputhra Finance to merge according to a consolidation plan. Under this proposed merger, Sinhaputhra Finance shareholders having 10000 shares of the company, will obtain 7803 shares in Commercial Leasing and Finance.

Further, LOLC Holdings has rolled out a major business consolidation master plan where they strengthen the financial sector entities. Under this plan one of its subsidiaries, LOLC Finance, will merge with Commercial Leasing and Finance. With this merger Commercial Leasing and Finance will exit the business, analysts said.

Amid those developments LOLC Holding companies’ share prices appreciated in the stock market. During the day Lanka IOC stocks also appreciated with the announcing of the possible joint venture with Ceylon Petroleum Corporation. The new joint venture would be Trinco Petroleum Terminals Ltd and it is expected to get Cabinet approval this week.

Accordingly, both indices moved upwards. The All -Share Price Index went up by 92.5 points and S and P SL20 rose by 46.9 points, which also reached the 4500 level. Turnover stood at Rs 9.4 billion with three crossings. Those crossings were reported in LBL Energy Fund, which crossed six million shares to the tune of Rs 66 million and its shares traded at Rs 11, Windforce 1.3 million shares crossed for Rs 24.7 million, its shares trading at Rs 19 and Browns Investments 49000 shares crossed for Rs 20 million, its shares fetching Rs 402.

In the retail market seven companies that mainly contributed to the turnover were, LOLC Finance Rs 1.2 billion (40.7 million shares traded), Browns Investments Rs 966 million (51.8 million shares traded), Sunshine Holdings Rs 683 million (10.5 million shares traded), Hayleys Rs 446 million (3.1 million shares traded), Expolanka Holdings Rs 384 million (985,000 shares traded), Royal Ceramic Rs 380 million (4.8 million shares traded) and LOLC Holdings Rs 363 million (253,000 shares traded). During the day 418 million share volumes changed hands in 67000 transactions.

On the previous day, Browns Investments’ acquisitions of Sierra Cables (Rs. 1,792 million – consisting of 29.50 per cent of an outstanding number of shares) and Agstar PLC (Rs. 1,123 million – consisting of 43.75 per cent of Voting shares and 66.66 per cent of non- Voting shares) pushed turnover to reach a four-month high at Rs. 15,561 million. However, that momentum continued yesterday as well.

Due to that Agstar and Sierra Cables share prices appreciated. Agstar share price appreciated by 45 per cent or Rs 3.60. Its share price shot up to Rs 11.40 from Rs 8. Sierra Cables share price appreciated by 40 per cent or Rs 10.90. Its share price appreciated to Rs 16 from Rs 11.50. Further, Softlogic Holdings share price appreciated by 28 per cent or Rs 10.90. Its share price appreciated to Rs 48.80 from Rs 39.10.

It is said that high net worth and institutional investor participation was noted in JKH, Teejay Lanka and Softlogic Capital. Mixed interest was observed in Expolanka Holdings, Lanka Orix Finance and LOLC Holdings, while retail interest was noted in Sierra Cables, Agstar and Browns Investments.

Yesterday, the US dollar was quoted at Rs 202.06, which was the Central Bank controlled price to prevent price escalations of the essential imports. This artificial suppression of the dollar as against the rupee created some negative impact to the economy, sources said.