CSE cruises past Rs. 5 trillion market capitalisation milestone

• Sharp gains by LOLC and Expolanka boost market’s value
• LOLC share price eyes Rs. 1,000 mark after peaking to Rs. 990
• YTD net foreign outflow surpasses Rs. 50 b mark too; heading for record figure in 2021
• Bourse ends November with 12.57% gain, the best MOM performance since January 2021
• S&P SL20 closed higher for the fifth consecutive month

As exclusively speculated by the Daily FT yesterday, the Colombo bourse achieved a major milestone with market capitalisation crossing the Rs. 5 trillion mark, whilst year-to-date (YTD) net foreign outflow topped the Rs. 50 billion figure as well. 

Unlike Monday, the stock market was very bullish yesterday with the All Share Price Index gaining by over 2% or 238 points, whilst the S&P SL20 climbed up nearly 2% or 70 points. Turnover improved to Rs. 10 billion involving 350 million shares. 

Yesterday's gain and higher closing ensured CSE's market capitalisation was well above the magical Rs. 5 trillion mark. It closed at Rs. 5.10 trillion, reflecting a whopping 72.4% gain YTD. The ASPI has given a near 69% return and S&P SL20 is up 47%, reaffirming the equity market has sustained its resilience and attractiveness amidst the COVID pandemic and other macro issues despite scepticism by some.

Consistent performer Expolanka continued its dream run, gaining by a further Rs. 18 or 7% to close at Rs. 281.50 with a market capitalisation of an imposing Rs. 550.3 billion. It touched an intra-day high of Rs. 284.50 and a low of Rs. 266.

However, it was LOLC which contributed most (81 points) to the ASPI's gain as it neared its magical Rs. 1,000 mark, hitting an intra-day high of Rs. 990 before closing at Rs. 983, up by 75.75 or 8%.

Asia Securities said market ended the month of November on a buoyant note as the indices extended their run of all-time closing highs, backed by a strong rally in EXPO. 

“Recording its biggest single-day rise in two weeks (238 points or 2.13%), the ASPI breached the 11,400 level, and the more liquid S&P SL20 index touched the 3,900 mark (+70 points) during the session before settling at 3,876 (+46 points),” Asia said.

Turnover was led by EXPO (Rs. 1.9 billion) and BIL (Rs. 1.7 billion), while the overall market cap of CSE hit the Rs. 5 trillion mark for the first time. On the sectoral front, Food, Beverage and Tobacco, Capital Goods, Transportation and Materials sectors led activity, collectively accounting for 74.4% of turnover. The breadth of the market turned positive as 105 stocks ended with price gains against 95 decliners.

Asia said continuing its upward trajectory for the eighth consecutive month, the ASPI recorded a gain of 1,278 points or 12.57% month-on-month (MOM) increase in November 2021, its best MOM performance since January 2021. Similarly, the S&P SL20 closed higher for the fifth consecutive month with a gain of 167.44 points MOM (+4.52%). Average turnover for November was recorded at Rs. 7.6 billion. 

Foreigners recorded a net outflow of Rs. 414.3 million while their participation increased to 5.9% of turnover (previous day 1.2%). Net foreign buying topped in Expo at Rs. 274 million while net selling topped in JKH at Rs. 348 million. 

First Capital also said the bourse closed in the green territory for the fourth straight session with an intraday gain at a two-week high with a recorded turnover of Rs. 10 billion while the market capitalisation peaked to Rs. 5 trillion. 

“Index opened on an optimistic note and set out on an upward trajectory throughout the session. However, a slight repulse was witnessed following the first half hour. Subsequently, investors gathered momentum and recouped shortly before closing for the day at 11,441, gaining 238 points,” First Capital said. It said turnover was led by a joint contribution of 43% from the Food, Beverage and Tobacco sector and Capital Goods sector. 

NDB Securities said high net worth and institutional investor participation was noted in Chevron Lubricants, Expolanka Holdings and Softlogic Holdings. Mixed interest was observed in LOLC Holdings, John Keells Holdings and Hayleys, whilst retail interest was noted in Browns Investments, Softlogic Capital and Ex-Pack Corrugated Cartons. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments), whilst the sector index gained 1.22%. The share price of Browns Investments gained Rs. 0.80 (6.02%), closing at Rs. 14.10.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index increased by 0.36%. The share price of John Keells Holdings recorded a loss of Rs. 4.50 (3.06%) to close at Rs. 142.50.

Ex-Pack Corrugated Cartons was also included amongst the top turnover contributors with its share price up 50 cents (2.18%), closing at Rs. 23.40.