‘CSE likely to prove attractive throughout 2022 as well’

By Hiran H.Senewiratne

A top CSE official said that 2021 has been a significant year for the CSE and its stakeholders in many respects, including capital- raising.

” Low interest rate and the high inflation level in the country had made the stock market attractive, which will likely continue as the trend this year as well, CSE’s Head of Marketing Niroshan Wijesundera told The Island Financial Review.

He said that investing in the stock market is the best option when the country has high inflation and low bank interest rates. Because the return on investments is very high with the booming of the stock market.

Amid those developments the market remained negative at the beginning dampening investor hopes of a turnaround due to profit- takings; however, it bounced back during the latter part of the day, dragging the All- Share Price Index to a positive note yesterday. The All- Share Price Index went up by 43.3 points and S and P SL20 declined by 21.7 points. Turnover, however, was a healthy at Rs. 7.7 billion involving 317 million shares with two crossings.

Those crossings were reported in LOLC Finance, which crossed 54.3 million shares to the tune of Rs 1.5 billion and its shares traded at Rs 28.10 and Dialog 4.5 million shares crossed for Rs 49.9 million, its shares traded at Rs 11.10.

In the retail market, the top seven companies that mainly contributed to the turnover were, LOLC Finance Rs 720 million (24.5 million shares traded), Browns Investments Rs 472 million (27.7 million shares traded), Expolanka Holdings Rs 452 million (1.2 million shares traded), Softlogic Holdings Rs 291 million (24.4 million shares traded), Softlogic Capital Rs 291 million (24.4 million shares traded), Softlogic Life Insurance Rs 264 million (2.6 million shares traded), Access Engineering Rs 205 million (5.9 million shares traded) and Richard Pieris Rs 194 million (seven million shares traded). During the day 317 million share volumes changed hands in 57000 transactions.

The Index witnessed massive volatility shortly into the market opening as it see-sawed from the red to green zone alternatively as investors gave away to a selling spree. However, the index moved on a gradual recovery but failed to uphold the momentum as it declined during the latter part of the session.

It is said high net worth and institutional investor participation was noted in LOLC Finance, JKH and Hayleys. Mixed interest was observed in Expolanka Holdings, Sunshine Holdings and Vallibel One, while retail interest was noted in Softlogic Capital and Softlogic Life Insurance, Browns Investments and Softlogic Capital.

It said the Diversified Financials sector was the top contributor to the market turnover due to Lanka LOLC Finance, while the sector index- gained. LOLC Finance contributed approximately 30 per cent to yesterday’s turnover.

Hela Clothing IPO which opened yesterday had been oversubscribed.

Yesterday, the US dollar rate was quoted at Rs 200.97, which was the Central Bank controlled price. However, with the heavy printing of Sri Lankan rupees, the inflation rate will move up exponentially. Currently, the actual dollar rate in the market would be Rs 250, market sources said.