CSE turnover hits Rs. 12 billion; investment in stocks gathers pace

By Hiran H.Senewiratne

Weak economic conditions and the lower interest regime propelled stock market activities to a higher level as most investors selected investing in the stock market as a prudent move. These trends resulted in CSE turnover reaching more than Rs 12 billion yesterday, market analysts said.

Despite the satisfactory turnover, both indices showed a downwards trend. Initially, the stock market indices gained the 200- point level and in the second half of the day the CSE witnessed heavy selling pressure on LOLC Group shares, stock analysts said.

Both indices moved downwards and declined by two percent. The All Share Price Index went down by 258 points and S and P SL20 declined by 59.8 points. Turnover stood at Rs 12.2 billion with three crossings. Those crossings were reported in JKH, which crossed 400,000 shares to the tune of Rs 59.2 million, its shares traded at Rs 148, Vallibel One 500,000 shares crossed for Rs 31.5 million, its shares traded at Rs 63 and Access Engineering one million shares crossed for Rs 25 million, its shares fetching Rs 25.

In the retail market top five companies that mainly contributed to the turnover were, LOLC Finance Rs 3.8 billion (160 million shares traded), Browns Investments Rs 2.5 billion (215 million shares traded), RIL Properties Rs 1.4 billion (110 million shares traded), Expolanka Holdings Rs 537 million (2.6 million shares traded) and LOLC Holdings Rs 520 million (783,000 shares traded).

The previous day LOLC Group bull runners witnessed a substantial decline in their shares, especially LOLC Finance that increased its share price in an exceptional manner on the previous day. It declined by seven percent or Rs 1.60. Its shares started trading at Rs 20.90 and at the end of the day they moved down to Rs 19.30.

Another subsidiary of the LOLC Group and the company with the largest market capitalization in the stock market, Commercial Leasing and Finance (CLC) depreciated its share price by 10 per cent or Rs 7.30. Its shares started trading at Rs 72.10 and at the end of the day they moved down to Rs 63. Further, CLC was the largest negative contributor to the All Share Price Index, which contributed 104 negative points. LOLC Development Finance (NIFL) shares declined by Rs 93.25 or 16 percent. Its shares started trading at Rs 580 and at the end of the day they declined to Rs 486.75. During the day 673 million share volumes changed hands in 79000 transactions.

Sri Lanka’s pioneering e-commerce enterprise Kapruka is to list on the CSE via a Rs. 500 million IPO. The funds raised via the IPO will be utilized to upgrade its existing technology and infrastructure and expand its cross-border export activities.

In addition, Kapruka is planning to generate new revenue streams by introducing several new e-commerce products, including a marketplace for premium brands, a used goods marketplace and a wholesale marketplace. The new products are expected to contribute to incremental revenue from around FY2023/24 onward.

Yesterday the US dollar was quoted at Rs 202.05. The Central Bank has imposed a controlled price for the US dollar at Rs 203, to prevent and control inflationary pressure in the country.