Softlogic Group drives CSE’s positive trajectory

By Hiran H.Senewiratne

Market turnover turned positive, driven by the Softlogic Group of companies, stock market analysts said.

However, the stock market earlier ended a tumultuous week suffering the sharpest falls in recent months though a late rally on Friday lifted hopes of investors and with yesterday’s positive market performance it had fully recovered, analysts said.

Yesterday the market witnessed some positive gains driven by the retail market and the notable gains reported in the Softlogic Group of companies, although this development could not be accounted for. However, it gave some impetus to the entire market by touching both indices upwards, accompanied by healthy turnover. The All- Share Price Index rose by 138 points and S and P SL20 went up by 15.3 points. Turnover stood at Rs 6.9 billion without any crossings.

In the retail market top seven companies that mainly contributed to the turnover were, Softlogic Capital Rs 1 billion (63.2 million shares traded), Softlogic Life Insurance Rs 1 billion (5.1 million shares traded), Expolanka Holdings Rs 792 million (2.2 million shares traded), Softlogic Holdings Rs 460 million (6.6 million shares traded), Browns Investments Rs 269 million (17.4 million shares traded), LOLC Holdings Rs 209 million (174,000 shares traded) and Agstar PLC Rs 170 million (13.7 million shares traded). During the day 317 million share volumes changed hands in 39000 transactions.

Yesterday, the Softlogic Group of companies recorded gains. Those were; the Softlogic CapitaI PLC share price appreciated by Rs 5.30 or 38 per cent. Its share price shot up to Rs 19.40 from Rs 14.10, Softlogic Life Insurance share price appreciated by Rs 38.75 or 22 per cent. Its share price moved up to Rs 217.25 from Rs 178.50, Softlogic Holdings share price appreciated by Rs 14.30 or 20 per cent. Its share price increased to Rs 73.40 from Rs 59.10.

The CSE turned positive yesterday because December corporate quarterly results that were released to date have been positive. However, Asian markets, especially South Korea, led a rebound in Asia’s emerging market shares on Friday, but were set for their biggest weekly decline since the onset of the pandemic, as investors brace for a year of aggressive rate hikes from the US Federal Reserve.

Shares in Seoul rose 1.9 per cent to pare some of the heavy losses recorded over the last few days, but were still on course for a nearly 6% weekly drop. The won weakened 0.3 per cent. US stock futures rose in Asia trade, while equities in Mumbai, Bangkok and Shanghai traded 0.2 per cent to 1.3 per cent higher, recouping some losses made in Thursday’s aggressive share sell-off, Reuters reported.

Yesterday, the US dollar was quoted at Rs 201.56, which was the Central Bank controlled price to stop the dollar rate from going up in order to prevent escalation of prices of imported essential items for the country. The actual rate is Rs 250 and above, market sources said.