Bourse’s bullish sentiment boosts indices; tile sector shares appreciate markedly

By Hiran H.Senewiratne

The CSE saw bullish sentiment among investors which drove both indices up amid a high Rs. 9 billion turnover level yesterday. The manufacturing sector companies, especially tile sector entities, noted a price appreciation while profit-takings were noted in plantations sector counters, stock market analysts said.

Tile sector entities experienced an exceptional price appreciation during the day due to import restriction of tiles and other related products. Those companies were Lanka Tiles, whose share price appreciated by 12.3 per cent or Rs 11.50. Its shares shot up to Rs 103.50 from Rs 92, Lanka Wall Tiles share prices appreciated by 12 percent or Rs 12.50. Its shares started trading at Rs 100.75 and at the end of the day they moved to Rs 113.25. Royal Ceramic share price appreciated by 7.3 per cent or Rs 4.30. Its share price appreciated to Rs 62.30 from Rs 58, Swisstek share price appreciated by 18 percent or Rs 6.30. Its shares started trading at Rs 35 at the end of the day they moved up to Rs 41.30.

Further, other manufacturing sector counters, such as, ACL and Expolanka also witnessed gains in their share prices at the stock market. ACL share prices appreciated by 8 percent or Rs 6.90. Its share price shot up to Rs 92.50 from Rs 85.60 and Expolanka contributed 52 points to the All- Share Price Index. Its share price appreciated by Rs 12 or five percent. Its share price rose to Rs 247.25 from Rs 235.25 at the end of the day’s trading.

The All Share Price Index gained 1 per cent or 171.95 points and the S&P SL20 gained by over 61.50 points. Trading of over 335 million shares boosted turnover to Rs. 9.1 billion with two crossings. Those crossings were reported in Lanka Reality Investments, which crossed 1.5 million shares to the tune of Rs 37.5 million and its shares traded at Rs 25 and Sampath Bank 600,000 shares crossed to the tune of Rs 33 million, its shares traded at Rs 65.

During the day top seven retail market contributors were; Browns Investments Rs 1.7 billion (132 million shares traded), Expolanka Holdings Rs 1.14 billion (4.6 million shares traded), Lanka Reality Investments Rs 650 million (24.8 million shares traded), Swisstek Rs 445 million (11.3 million shares traded), Royal Ceramic Rs 432 million (seven million shares traded), LOLC Finance Rs 383 million (14.2 million shares traded) and LOLC Holdings Rs 341 million (371,000 shares traded), During the day 58000 transactions occurred.

Net foreign selling on the previous day hit a new high of Rs. 934 million, pushing the year-to-date net outflow to over Rs. 49.5 billion. Last week, net outflow topped Rs. 1 billion as well. Further two IPOs were made in Myland and First Capital. Under the Myland IPO they will offer 6.2 million shares at a share price of Rs 12 to raise Rs 75 million. It will be listed in the Divisavi Board and its purpose is to acquire properties for real estate projects in the country. It will start offering from December 8, 2021.

Yesterday the US dollar was quoted at Rs 202.53, which was the controlled price of the Central Bank to control the price increase in essential imported items. Sri Lanka has recorded the highest food price inflation in the recent past. If the Central Bank doesn’t control the dollar rate, prices of essential items will further go up, market sources said.