ASPI reaches record 9339 points

By Hiran H.Senewiratne

CSE yesterday catapulted to a new high in terms of price indices, turnover and volume on the back of improved sentiment triggering strong buying. For example, the All- Share Price Index reached a highest ever recorded 9339 points yesterday. Until then, the highest level to be reached was 9335 points on September 2, stock market analysts said.

Initially, the CSE was bullish and in the middle of the session some profit takings were witnessed. However, later notable buying interest was indicated. Sri Lanka stock index gained 3.69 percent on Monday, after the new Central Bank Governor Ajith Nivard Cabraal’s statement over the weekend pointed to some stable interest rates and exchange rates in the near future, brokers said.

The market has suffered a net foreign outflow of over Rs 43.2 billion so far this year. It is said that foreigners seized the opportunity to exit with net selling (mainly in JKH), amounting to Rs. 723 million. Further, foreign investors sold a net Rs 722 million worth of shares on Monday.

Amid those developments both indices moved upwards. The All-Share Price Index went up by 69.63 points and S and P SL20 rose by 37.2 points. Turnover stood at Rs 6.6 billion with three crossings. Those crossings were JKH, which crossed 1.6 million shares to the tune of Rs 225.6 million and its shares traded at Rs 139, Hayleys PLC 500,000 shares crossed for Rs 59.3 million, its shares traded at Rs 106.75 and Browns Investments five million shares crossed for Rs 49.5 million, its shares fetching Rs. 9.90.

In the retail market, some companies that mainly contributed to the turnover were, Expolanka Holdings Rs 2.2 billion (11.2 million shares traded), Browns Investments Rs 942 million (95.7 million shares traded), LOLC Finance Rs 374.6 million (37.4 million shares traded) and Commercial Leasing Rs 347 million (10.6 million shares traded). During the day 263 million share volumes changed hands in 38000 transactions. It is said that the market turned buoyant on the first day of the week with the ASPI surpassing the 9,000 level and recording its biggest single-day gain in the last seven months (330 points) to reach a three-week high, led by price gains in index-heavy LOLC Group of companies and Expolanka.

In the meantime, Nation Lanka Finance PLC and Singhaputra Capital Investments Limited are planning an amalgamation as a consolidation plan to meet the Rs 2.5 billion capital adequacy ratio. Therefore, Nation Lanka Finance is now in consultation with major shareholders of Singhaputra Capital Finance Limited and have reached a decision to pursue an alternative method, which will enabled Nation Lanka Finance to satisfy the capital infusion by way of a private placement. Both companies have entered into a share subscription agreement, stock market analysts said.

Yesterday, the US dollar reached the parity rate of Rs 200.3362.