Inclusion of new companies in S&P SL20 index impacts CSE positively

by Hiran H.Senewiratne 

The CSE recently included seven companies  in the S & P Sri Lanka 20 index. As a result, the bourse  made some gains yesterday.

The exclusions and inclusions in the index as announced by S&P Dow Jones Indices were effective from December 21, 2020 (after the market close of 18th December 2020). Those new companies are, Dipped Products, Distilleries, Exoplanka, Hayleys PLC, Hemas Holdings, Royal Ceramic and Tokyo Cement, stock market analysts said.    

Meanwhile, Amana Takaful PLC will go for an unlisted, unrated, redeemable convertible  debenture issue worth Rs. 300 million or 66.7 million shares for the  face value Rs. 4.50 per debenture.  The tenure of the debenture would be five years and the profit rate would be the average weight lending rate, that would be 4 percent to 13 percent, market analysts said. 

Amid those developments, the CSE was a bit bullish at the commencement of trading but in the latter part of the day there was a slight decline. However, both indices moved upwards with the appreciation of the shares of the new companies included in the S and P SL20. All Share Price Index was up by 5,76 points and S and P SL20 up by 7.26 points. The turnover stood at Rs. 2.5 billion with one crossing. The crossing was reported in Hemas Holdings, which crossed 556,000 shares to the tune of Rs. 53.9 million, its shares traded at Rs. 92.

In the retail market, top five contributing companies to the turnover were; Expolanka Rs. 551 million ( 20.5 million shares traded), Tokyo Cement (Non Voting) Rs. 314.6 million (4.8 million shares traded), JKH Rs. 254 million (1.7 million shares traded), Tokyo Cement (Voting) Rs. 199 million  (2.7 million shares traded) and Browns Investments Rs. 134.5 million (34.5 million shares traded), During the day  94.1 million share volumes changed hands in 19522 transactions