CSE bull-run continues; ASPI reaches 9950 points level

By Hiran H.Senewiratne

Trading activities at the CSE were extremely bullish yesterday, moving up to the 10000 level. During the middle of the session profit- takings were noted and the market was able to set an all- time high record after touching the 9950 level in the All Share Price Index, stock market analysts said.

Amid those developments, Expolanka Holdings surpassed total market capitalization of Rs 408 billion, which was the highest in the CSE history, from the viewpoint of a company’s market capitalization, market analysts said. The Expolanka share price appreciated by Rs 7.50 or 3.7 percent. Its shares shot up to Rs 209 from Rs 201.50, thus contributing 32.9 points to the All Share Price Index.

Although Commercial Leasing and Finance, one of the subsidiaries of the LOLC Group, witnessed a price depreciation after recording price appreciations during the previous two days, the exceptional rally on LOLC stocks continued. This was because LOLC Group’s Singapore based subsidiary, LOLC Asia (Pvt) Ltd, had received approval from the financial services regulators in Pakistan to increase up to 100 percent its shares in PAK Oman Microfinance, by acquiring the remaining 49.9 percent shares of the company for a consideration of Pakistan Rs 1.21 billion or US $ seven million, stock market analysts said. Commercial Leasing share price went down by Rs 3 or six percent. Its shares started trading at Rs 44.40 and at the end of the day its shares depreciated to Rs 41.40.

Due to these positive market developments, the All Share Price Index went up by 33.7 points and S and P SL20 rose by 32.25 points. Turnover stood at Rs 4.5 billion with three crossings. Those crossings were reported in Melstacorp, where 500,000 shares crossed for Rs 28.2 million and its shares traded at Rs 56.50, Cargills Ceylon PLC 100,000 shares crossed for Rs 23.2 million, its shares traded at Rs 232 and Royal Ceramic 396,000 shares crossed for Rs 26 million, its shares traded at Rs 55.60.

In the retail market, top five companies that mainly contributed to the turnover were, Expolanka Holdings Rs 812 million (3.9 million shares traded), Browns Investments Rs 391 million (36.5 million shares traded), LOLC Holdings Rs 334 million (510,000 shares traded), Royal Ceramics Rs 265 million (7.4 million shares traded) and Hayleys Fabrics Rs 265 million (7.4 million shares traded). During the day, 149.4 million share volumes changed hands in 37000 transactions.

The Colombo CSE had given, in principle, approval for Sarvodaya Development Finance Ltd.’s (SDF) Rs. 1 billion Initial Public Offering (IPO). SDF will issue 22.727 million shares at Rs. 22 each with an option to issue a further 22.727 million shares at the same price in the event of an oversubscription of the original amount.

CSE said it had approved the listing of SDF shares by way of an offer for subscription on the Main Board or Diri Savi Board, as applicable. The official opening of the SDF IPO is November 23, while it will be available for subscription from October 28 onwards.

Yesterday, the US dollar rate was Rs 201.04, which was the controlled rate set by the Central Bank of Sri Lanka.