Renewed interest propels plantation stocks to dominate Top 10 gainers

Thursday, 28 July 2022 00:19 - - {{hitsCtrl.values.hits}}

The Colombo stock market saw renewed interest on plantation stocks propelling those to dominate the league of Top 10 gainers yesterday.

Seven of the Top 10 gainers were plantation stocks and their sector Food, Beverage and Tobacco saw 19.7 million shares change hands via 4,339 trades generating a Rs. 573 million turnover.

Whilst deals on Sunshine Holdings accounted for bulk (Rs. 421.6 million) of the turnover plantation stocks figured prominently as well.

Malwatte (X) topped the list of gainers with 20% and its voting share gained by 17%. Other top gainers included Udapussellawa (18%), Bogawantalawa (15%), Hapugastenne (14%), Madulsima (13%) and Maskeliya (11%).

Analysts attributed the renewed investor focus on plantation stocks to re-rating of prospects with tea fetching higher prices in recent months as well as they have been relatively undervalued.

Forbes and Walker Tea Brokers said in June the FOB Value of Rs. 1,779.63 per kilo was the highest ever in a calendar month surpassing the previous best of Rs. 1,705.14 recorded in May 2022. The FOB value has seen an increase of Rs. 862.38 compared to Rs. 917.25 of June 2021. FOB value has also shown a gain of 0.33 in USD terms.

July sees Rs. 754 m in net foreign inflow to CSE with Rs. 282 m addition into Sunshine