CSE achieves milestone of Rs. 5 trillion closing market capitalization

By Hiran H.Senewiratne

The CSE has achieved a significant milestone of Rs. 5 trillion closing market capitalization with bullish investor sentiment being sustained yesterday, stock market analysts said.

CSE would have closed even on the previous day on the milestone as the ASPI recovered mid-day after falling in early trading but couldn’t sustain the rally. However, market capitalization amounted to Rs. 5 trillion yesterday, stock market analysts said. Year-to-date (YTD) the CSE’s value is up by a whopping 69 per cent. Thanks to the sustained bullish sentiment among local investors, market capitalization yesterday was around 30 per cent of GDP as against 20 per cent last year.

The market closed on the up yesterday while posting a healthy Rs. 10 billion in turnover, with over 350 million shares traded with four crossings. Crossings were reported in Chevron Lubricants, which crossed two million shares to the tune of Rs 213 million, its shares traded at Rs 106.50, Expolanka Holdings 500,000 shares crossed for Rs 140.5 million, its shares traded at Rs 281, Softlogic Holdings 1.8 million shares crossed for Rs 26.1 million, its shares traded at Rs 14.50 and Hayleys Fabriks 625,000 shares crossed for Rs 24.6 million, its shares traded at Rs 39.50.

Both induces moved upwards. The All- Share Price Index went up by 238 points and S and P SL20 rose by 70.2 points. Top seven contributors to the turnover were Expolanka Holdings Rs 1.7 billion (6.2 million shares traded), Browns Investments Rs 1.6 billion (119 million shares traded), LOLC Holdings Rs 586 million (three million shares traded), Expack Corrugated Cartoons Rs 411 million (17.1 million shares traded), Hayleys Rs 366 million (3.3 million shares traded) and LOLC Finance Rs 282 million (10.2 million shares traded).

Another looming milestone though is the negative year to date net foreign outflow, which is nearing Rs. 50 billion. As of the previous day, it amounted to Rs. 49.87 billion. This is on top of a record Rs. 51 billion outflow last year. With a month more, the 2021 figure is likely to be a new high, market sources said.

Amid those developments the stock market was positive at the outset and during the first half of the session profit takings were noted and later on the market reached 200 points and gained by 2.13 percent. Yesterday heavy buying behaviour was noted in Expolanka Holidings, which became the largest listed compnay in the stock market. its share price appreciated by seven percent or Rs 18. Its share price moved to Rs 283 from Rs 263.50 while contributing 150 points to the All- Share Price Index. Most profitable listed corporate Expolanka Holdings saw its market value surpass the half-a-trillion mark to close yesterday at Rs. 515.1 billion or over 10 per cent of the CSE’s total.

Last year, Expolanka was ranked at number 13 with a market capitalization of only Rs. 56.7 billion and 2020 closing price of Rs. 29. Yesterday’s standing reflects a near ten-fold increase, or up by Rs. 460 billion, year-to-date. Expolanka, which has been the most consistent performer this year, saw 7.22 million shares change hand via 4,714 trades for Rs. 1.86 billion.

Analysts said if one had invested Rs. 1 million in Expo shares in November 2020 (at Rs. 26 per share) the value of that would have been worth over Rs. 10 million as of now.

Further, several LOLC Group of companies, LOLC Holdings, Browns Investments and Brown and Company share prices gained significantly. LOLC Holdings share price appreciated by Rs 75 or 8 per cent. Its share price shot up to Rs 983 from Rs 907.25, Browns Investments share price appreciate by six per cent or 80 cents. Its share price shot up to Rs 14.10 from Rs 13.30 and the Brown and Company share price appreciated by Rs 21.25 or nine per cent. Its share price shot up to Rs 277 from Rs 248.25. During the day 350 million share volumes changed hands in 62000 transactions.

Yesterday, the US dollar rate was Rs 202.72, which was the controlled price of the Central Bank.