Friday, 16 August 2013 03:40
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Ceylon Tobacco Company Plc (CTC) yesterday established a new record for the most valuable listed corporate in the country. Its share price gained by a near 9% or Rs. 111.90 to close at Rs. 1,383.40 whilst enjoying a intra-day high of Rs. 1,400.50.
At yesterday’s closing price, CTC’s market capitalisation was Rs. 259.14 billion or 10.72% of Colombo Stock Exchange’s total. This fete surpassed the previous highest market capitalisation of former number one JKH of Rs. 254.7 billion on 20 May.
In comparison to CTC’s 2012 closing figure, yesterday’s price reflects a whopping Rs. 553 or 67% increase. CTC overtook JKH as the most valuable listed company on Tuesday when its market cap amounted to Rs. 224.8 billion. Since Monday, CTC’s market cap has risen by Rs. 34.36 billion.
JKH, which has been the darling of foreign investors, however, continue to struggle. It was down by Rs. 2.20 to close at Rs. 258.80. It finished yesterday with a market capitalisation of Rs. 221.1 billion or 9.14%, down from 9.44% on Monday.
Meanwhile the Reuters reported that the Colombo stock market hit a more than two-month high on Thursday, helped by foreign buying and a sharp gain in market heavyweight Ceylon Tobacco Company PLC in thin trade, but brokers said the bourse would not be able to sustain the upward trend due to the absence of retailers.
The main share index ended 0.18 percent or 11.43 points firmer at 6,220.10, its highest close since June 12.
“Retail sentiment is dead. Only foreign buying and some thin trading in market heavyweights is keeping the market up,” a stockbroker said on condition of anonymity.
High interest rates and overall falling shares have prompted retail investors adopt a ‘wait-and-see’ approach, brokers said.
Foreign investors were net buyers of 103.5 million rupees worth of shares, extending the year-to-date net foreign inflow to 17.3 billion rupees.
Analysts said local investors were also cautious and awaited further direction despite the central bank easing monetary policy as concerns over the weakening rupee and high lending rates dented sentiment.
Market heavyweight Ceylon Tobacco Company jumped 8.6 percent to 1,382 rupees a share.
Turnover was 646.6 million rupees, less than this year’s daily average of about 920 million rupees.
Meanwhile the Sri Lankan rupee ended firmer on Thursday due to lack of buying pressure which forced banks and exporters to sell the U.S. currency, dealers said.
The rupee currency spot ended at 131.35/45 per dollar, firmer than Wednesday’s close of 131.50/58.
“There is no buying support in the market so everybody is selling the dollars as they can’t hold any longer,” said a currency dealer asking not to be named.
