Retail investors drive surge in stocks: Softlogic share prices appreciate

By Hiran H.Senewiratne

The Colombo Stock Exchange (CSE) gathered momentum yesterday with both indices gaining. The ASPI momentarily surpassed the 12,000-point reaching the highest-ever level, thus turnover reached healthy levels although the market closed two hours before normal time in view of Christmas holidays, stock market analysts said.

The index opened on an upbeat note and rose steeply, reaching an intra-day high of 12,050, driven mainly by active retail participation. Subsequently, the index slightly edged down but remained high and upheld a strong momentum as the day closed. Turnover was led by a joint contribution of 41 percent from the energy sector and capital goods sector.

All Share Price Index gained by over 119 points or 1.16 percent and S&PSL20 index improved by 6.05 points or 0.7 percent. Market capitalization was up a whopping 80.7 percent to Rs. 5.34 trillion, the analysts said.

Since the market is fully retail-driven, its buying interest is noted in most companies. But notable buying interest triggered in the Softlogic Group of Companies.

Softlogic Holdings’ share price appreciated by 20 percent or Rs 4.20.Its share price shot up to Rs 25.50 from Rs 21.30, Softlogic Capital share price appreciated by 14 percent or Rs 1.10. Its share price moved to Rs 8.90 from Rs 7.80, Softlogic Life Insurance share price appreciated by eight percent or Rs 4.70. Its share price shot up to Rs 60 from Rs 55.30 and Softlogic Finance share price appreciated by 15 percent or Rs 1.80. Its share price moved to Rs 13.30 from Rs 11.50.

Amid those developments turnover stood at Rs 2.8 billion sans a single crossing. In the retail market top seven companies that mainly contributed to the turnover were Lanka IOC Rs 423 (5.7 million shares traded), Softlogic Capital Rs 337 million (38.9 million shares traded), Expolanka Holdings Rs 213 million (553,000 shares traded), Softlogic Holdings Rs 183 million (three million shares traded), Browns Investments Rs 139 million (7.7 million shares traded), SMB Leasing Rs 105.4 million (56.9 million shares traded), and Royal Ceramic Rs 93.4 million (1.2 million shares traded).

It is said the bourse ended in green territory following Wednesday’s gaining spree as investors regained confidence in the market while also recording a healthy turnover. Therefore, 175 million share volume changed hands in 26000 transactions yesterday.