CSE sustains bullish trend: indices up

By Hiran H.Senewiratne

CSE sustained its upward trend yesterday from a position of strength as both indices gained on healthy turnover. At the beginning, the market witnessed a downward trend and in the first half of the session profit- taking was witnessed in the previous day’s bull- running companies. The banking sector’s positive momentum continued like on the previous day but did not witness any substantial gains, stock market analysts said.

It is said the market returned to positive territory as both the indices resumed their upward trajectory on the back of price gains in index heavy NIFL and LOLC, while banking sector stocks witnessed a significant pickup in prices during the session, indicating an improved sentiment in the sector.

Net foreign outflow crossed the Rs. 45-billion-mark year-to-date with Rs. 101 million worth of net selling on the previous day. Estimated net foreign selling topped in Dialog at Rs. 40.6 million, while net buying topped in Royal Ceramics at Rs. 14 million.

Both indices moved upwards. The All- Share Price Index went up by 44.55 points and S and P SL20 rose by 17.01 points. Turnover stood at Rs 3.5 billion with two crossings. Those crossings were reported in Amaya Leisure, which crossed 1.3 million shares to the tune of Rs 33.8 million; its shares traded at Rs 26 and Hayleys 200,000 shares crossed for Rs 20.1 million, its shares traded at Rs. 100.50.

In the retail market top five companies that mainly contributed to the turnover were; Expolanka Holdings Rs 602 million (3.1 million shares traded), Browns Investments Rs 371 million (35.1 million shares traded), Sampath Bank Rs 270 million (4.6 million shares traded), Pan Asia Bank Rs 160 million (8.5 million shares traded) and Amana Bank Rs 142 million (33.7 million shares traded). During the day 239 million share volumes changed hands in 35000 transactions.

Amid those developments new IPOs are in the pipeline. The Ex-Pack Corrugated Carton Limited IPO will likely open on October 22, 2021. The company will issue 83.3 million shares at a price of Rs. 26 to raise Rs 699 million. This share issue would be 25 percent of the total shareholding. Purpose of this IPO is to raise funds to set up a manufacturing facility. Total estimated cost for the facility would be Rs 2.9 billion. Apart from the Rs 699 million IPO, the company will look for other avenues to collect funds from internal funds, Rs 602 million, investment property sales Rs 450 million and Rs 1.2 billion from debt financing.

Yesterday, the Sri Lankan rupee was quoted against the US dollar at Rs 199.40. This was a controlled price set by the Central Bank to stabilize price escalation in essential goods.