CSE buoyant on positive news from Paris Club group of creditor nations and Port City Colombo

By Hiran H.Senewiratne

Net foreign inflow to the CSE year-to-date has surpassed Rs. 19.5 billion by last week following the Expolanka Holdings buying. Further, investor sentiment moved up with the news reports on Port City as its infrastructure development work is to be completed by the end of 2023, stock market analysts said.

This trend continued due to buying interest among retail investors for Expolanka and other blue chip companies in the market, stock market analysts said this record feat was possible thanks to Rs. 1.1 billion net buying last week bringing the total for December so far to Rs. 1.9 billion.

The year-on -year 2022 figure is the highest since 2013 when CSE drew Rs. 22.7 billion in net foreign inflow. Bulk of this year’s net foreign inflow is due to parent SG Holdings of Japan buying into Sri Lanka’s most valuable listed entity Expolanka Holdings PLC.

At the end of September 2022, SG Holdings Global Ltd. held 79.47 percent stake, up from 75.62 percent as at end June. Therefore, share price was appreciated by six percent or Rs 11.50, which shot up to Rs 207.75 from Rs 194.50.

Amid those developments shares edged up in mid-day trade yesterday continuing the positive run for seven straight sessions on news over a possible debt restructuring from Paris Club, analysts said.

All Share Price Index gained by 74 points, while the most liquid shares gained by 32 points. Turnover stood at Rs 2.9 billion with a single crossing. The crossing was reported in Expolanka Holdings, which crossed 3.6 million shares to the tune of Rs 730 and its share price traded at Rs 200. In the retail market top seven companies that mainly contributed to the turnover were Expolanka Holdings Rs 433 million (2.1 million shares traded), Lanka IOC Rs 382 million (1.8 million shares traded), Browns Investments Rs 344 million (45 million shares traded), Aitken Spence Rs 118 million (820,000 shares traded), Keells Hotels Rs 70 million (309 million shares traded), LOLC Finance Rs 65.5 million (8.2 million shares traded) and Colombo Fort Land Rs 59.5 million (1.8 million shares traded). During the day 111.3 million share volume changed hands in 20000 transactions.

Further, the market was pushed up over the news of a potential 10 year debt moratorium,” analysts said. The Paris Club group of creditor nations has proposed a 10-year debt moratorium on Sri Lankan debt and 15 years of debt restructuring as a formula to resolve the island nation’s prevailing currency crisis.

Yesterday the Central Bank announced the daily US dollar rate. The daily buying rate Rs 361.30 and the selling rate Rs 371.71.