LOLC counters continue momentum: main indices up

By Hiran H.Senewiratne

The CSE yesterday gathered more momentum notwithstanding private sector concerns over some of the tax proposals in Budget 2022. The stock market was highly volatile throughout the day. It was positive at the beginning and selling pressure was witnessed during the middle of the day. However, during the latter part of the day, the CSE became positive because LOLC Group counters were able to maintain their momentum, stock market analysts said.

New buying interest was noted in tile sector and construction sector counters but profit takings appeared in LOLC Group counters. Both indices showed an upward trend. All Share Price Index went up by 16.56 points and S and P SL20 rose by 51.02 points. Turnover stood at Rs10.2 billion with a single crossing. The crossing was reported in Sunshine Holdings, which crossed 28 million shares to the tune of Rs 767 million and its shares traded at Rs 30.70.

Year-to-date return of ASPI crossed the 60 per cent mark yesterday to 62.50 per cent. S&PSL20 has seen a 36.7 per cent return. Market capitalization on the other hand is nearing the Rs. 5 trillion mark with the previous day closing being Rs. 4.912 trillion, up by 66% so far this year.

In the retail market, top seven companies that mainly contributed to the turnover were, LOLC Finance Rs 3.4 billion (95.7 million shares traded), Expolanka Holdings Rs 1.5 billion (6.9 million shares traded), Sunshine Holdings Rs 944 million (26.9 million shares traded), Browns Investments Rs 363 million (32.4 million shares traded), LOLC Holdings Rs 275 million (368,000 shares traded), Shaw Wallace Investment Rs 266 million (21.6 million shares traded) and Commercial Leasing and Finance Rs 207 million (2.6 million shares traded).

During the day Expolanka Holdings and Sunshine Holdings made some gains. Expolanka share price appreciated by five percent or Rs 11.75. Its share price started at Rs 215 and at the end of the day it shot up to Rs 236.75 and Sunshine Holdings share price appreciated by nine percent or Rs 2.90. Its share price started at Rs 32.50 and at the end of the day it moved up to Rs 35.20. During the day 384 million share volumes changed hands in 59000 transactions. Separately, Vidullanka announced an interim dividend of 175 cents (Rs. 0.175) per share.

It is said high net worth and institutional investor participation was noted in Vallibel One, Chevron Lubricants and Melstacorp. Mixed interest was observed in Expolanka Holdings, Browns Investments and Sunshine Holdings, while retail interest was noted in Lanka Orix Finance, SMB Leasing nonvoting and Lanka Credit and Business Finance Ltd.

Meanwhile, Capital Alliance Limited, a leading primary dealer company, will go for an initial public offering on November 25. The company will offer 41.7 million ordinary shares at a price of Rs 10 to raise Rs 411.7 million. It will be listed in the Divisavi Board. The objective of the IPO is to improve the co-capital requirement of the company.

Yesterday, the US dollar rate was Rs 201.34, which was the Central Bank controlled price to prevent price escalation of essential imported items into the country. The actual price of a US dollar would be more than Rs 130.