CSE recovers after shaky start to reap turnover of Rs. 5.41 billion

By Hiran H.Senewiratne

Stock market trading was positive during the morning session yesterday but later investors panicked and profit-takings were noted when the Central Bank announced that it had decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points each, to 5.00 per cent and 6.00 per cent respectively. However, towards the latter part of the day the CSE showed some recovery, stock market analysts said.

On the back of a bullish market dominated by local investors, the logistics-rich but young diversified conglomerate Expolanka Holdings PLC yesterday dislodged JKH and Ceylon Tobacco to become the second-most valuable listed company in Sri Lanka. Further, Commercial Leasing and LOLC Finance made announcements that they have no undisclosed price sensitive information in relation to their companies or any other reasons to have unusual trading activities during the last two days, analysts said. Despite both indices going down yesterday, the market reported a healthy turnover of Rs. 5.41 billion without a crossing. All Share Price Index went down by 89.03 points and S and P SL20 declined by 20.43 points.

In the retail market top five companies that mainly contributed to the turnover were, Expolanka Holdings Rs. 1.7 billion (18.3 million shares traded), Browns Investments Rs. 739.4 million ( 104.4 million shares traded), LOLC Finance Rs. 692 million (61.4 million shares traded), Sierra Cables Rs. 233.7 million (25.7 million shares traded), LOLC Finance Rs. 225.4 million (485,000 shares traded), Commercial Leasing Rs. 191.1 million (11.6 million shares traded) and Royal Ceramic Rs. 155.5 million (four million shares traded). During the day 310 million share volumes changed hands in 45000 transactions.

Major negative contributors to the All Share Price Index were NIFL (19.9 negative points), LOLC (17.1 negative points) and Expolanka (16 negative points). JAT Holding Ltd. became JAT Holdings PLC after listing in the stock market.

CSE said that it had showcased a strong growth trajectory in capital raised by Sri Lankan corporates of all scales during the first seven months of 2021.

It said Sri Lankan corporates are increasingly recognizing the Exchange as a platform to achieve greater financial freedom, improved access to capital and as a means of enhancing their global profile besides accessing liquidity and proving an attractive proposition to tap into for global capital.

To date, the CSE has facilitated 12 new listings, including seven debt IPOs with a value of Rs. 47.29 billion, four equity IPOs with a value of Rs. 7.49 billion and one SPO with a value of Rs. 3.5 billion. This is the highest number of equity IPOs that the CSE has facilitated since 2014 and the largest in cumulative value since 2011.