CSE Highs and Lows

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It was another eventful week at the Colombo Stock Exchange (CSE). The CSE Board of Directors decided last Monday (15) to revise the All Share Price Index (ASPI) to a free float-adjusted market capitalisation basis from January 2022, even as the (ASPI) surpassed the 11,000 mark last Tuesday (16) for the first time in history.

On Tuesday, Commercial Leasing and LOLC Finance PLC (LOFC) were the biggest contributors to the ASPI – a common occurrence in the past few weeks – with 148 and 82 points, respectively.

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“(The) index continued on a gradual uptrend, followed by a sideways movement throughout the trading session while closing at an all-time high of 11,008 and gaining 256 points for the day,” First Capital said on the day’s performance.

More than 538 million shares were traded on Tuesday overall, with market turnover recorded at Rs. 10 billion, and total market capitalisation at Rs 4.91 trillion, indicating an YTD gain of 65.94%.

Before the record-breaking performance on Tuesday, last Monday saw the ASPI closing at 10,752.82. LOFC notched the top net purchaser slot with a net inflow of Rs 18.77 million, whilst Chevron Lubricants notched the top net seller slot with an outflow of Rs. 34.65 million. 

“(The) index plunged as soon as trading switched on, and bottomed out to an intra-day low of 10,354. However, the market exhibited a quick recovery in the next few minutes and continued on a gradual uptrend, followed by a sideways movement in the rest of the trading session, and displayed a further uptrend towards the end while closing at a (then) all-time high of 10,752; gaining 86 points,” First Capital had said last Monday.

Last Wednesday (17), although the ASPI recorded an intraday high of 11,117.79 points, the market closed at 11,024.89, still on an upward curve, as Tuesday’s performers, such as Commercial leasing and LOFC, lost 58 and 6 points in the index, while Expolanka performed well with 51 points.

However, Wednesday did record a turnover of Rs. 10 billion for the second time of the week.

A total of Rs. 384 million was traded, as LOFC was the top contributor for share volume and turnover, with 95 million shares and 3.4 billion respectively.

Also last Wednesday, SMB Leasing PLC and Sunshine Holdings PLC both confirmed that there is no undisclosed price-sensitive information withheld by either company in relation to their shares (SEMB.X) that resulted in the unusual trading of both their shares last Tuesday. SMB Leasing PLC stated that it is not aware of any reasons which may have caused its shares to gain by 50% on that day.

The investor forum to advise investors about the initial public offering (IPO) of Sarvodaya Development Finance (SDF), which will go public on 23 November, was also held last Wednesday. The IPO will comprise an initial issue of 22,727,273 shares, raising Rs. 500 million, followed by a greenshoe issue of a further 22,727,273 shares for an additional Rs. 500 million. 

Two of Sri Lanka’s most prominent banks, Sampath Bank and NDB Bank, have underwritten 50% of the initial tranche of the IPO. Shares have been priced at Rs. 22 and SDF intends to raise the entire Rs. 1 billion to partially finance its growing loan portfolio and help fulfil its regulatory core capital requirements.

Meanwhile, Lanka Credit and Business Finance Ltd. rang their bell at the CSE on Wednesday as well.

CSE - Colombo Stock Exchange

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