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The Colombo Stock Exchange - File photo
By Nisthar Cassim
The Colombo bourse and investors yesterday proved their optimism despite the raging COVID pandemic and associated challenges, propelling the market to an all-time high with its gain in value crossing the Rs. 1 trillion mark so far in 2021.
The combined market value of listed companies has skyrocketed by Rs. 1 trillion so far this year as CSE’s market capitalisation amounted to Rs. 3.97 trillion, up 34% year-to-date (YTD). CSE ended 2020 with a market capitalisation of Rs. 2.96 trillion. The benchmark All Share Price Index (ASPI) shot up by 164 points or 1.87% to close at a new high of 8,920.71 points. It surpassed the previous best of 8,812 points established on 27 January 2021. The YTD gain of ASPI crossed the 30% mark to 31.69%. From ASPI›s lowest for the year (6,854), the index has risen by 2,066 points or 30%.
The more active S&P SL20 saw hyper performance, gaining by 4.5% (by far the highest day gain this year) or 143 points to close at 3,327 points and stretching its YTD gain to 26%. However, S&P SL20 is yet to surpass its highest level of 3,514 points, prompting analysts to speculate there is more room for upward momentum.
Turnover was Rs. 10.5 billion, surpassing the Rs. 10 billion mark for the second time this week after Monday. A relatively lower volume of 285.4 million shares traded as the high turnover reflected the premium paid or the gains in share price.
The rally was fired up by renewed buying into the country›s most profitable listed corporate Expolanka Holdings PLC. It saw a record volume of 27.26 million shares changing hands via 12,090 trades for Rs. 3.8 billion.
Surprising even the most optimistic and proving pundits wrong, Expolanka touched an intra-day high of Rs. 150.75 before closing at Rs. 146.75, up 19.55% or Rs. 24, establishing a new price milestone. It crossed the Rs. 100 mark only on Friday. Yesterday›s sharp gain established Expo as a clear leader as the most valuable stock worth Rs. 286.88 billion, accounting for 7.23% of CSE›s total. Expo›s gain was so significant it occupied the third place in terms of percentage rise.
LOLC›s retention of the number one slot lasted just one day despite the share gaining by 3.66% or Rs. 18.50 to Rs. 523.75 with 1.25 million shares changing hands via 1,383 trades for Rs. 652.4 million. Its market capitalisation was Rs. 248.88 billion or 6.28% of CSE›s total. LOLC Group entities Browns Investments, LOLC Finance were among top traders, volume wise.
Hayleys, as reported by the Daily FT yesterday, saw further investor interest, generating the second highest turnover after Expo. Nearly 12 million Hayleys shares changed hands via 4,090 trades for Rs. 1.2 billion before closing at Rs. 105.75, up by 14.5% or Rs. 13.45. This is a record high post-splitting of Hayleys shares. With Wednesday›s volume of 8 million shares, Hayleys has seen a record near 20 million shares transacted in four days.
Speculative investors also stepped-up their interest in hotel sector stocks, driven by possible new management deals as well as rapid vaccination in the country likely to help tourism. The latter is despite even the Central Bank last week admitting that early revival of tourism is unlikely given spikes in global COVID cases and related restrictions. Five of the top 10 gainers, percentage wise, came from the hotel sector. LOLC/Browns Group-linked Eden Hotel saw interest for the second day as it topped the list of gainers with 28% or Rs. 5.10 to Rs. 23. Around 11.6 million shares changed hands via 2,919 trades for Rs. 252 million. Related party Palm Garden rose by 21%, Serendib Hotels non-voting was up by 13%, voting by 10.5% and Taj Lanka by 12%.
First Capital said the ASPI witnessed a sharp upswing with sizable volatility till mid-session and thereafter, a sideways movement as the index trimmed some of the early gains ahead of the closing at 8,921, gaining 164 points.
It said the high turnover was supported by high retail participation in EXPO and HAYL counters. The Transportation sector, followed by the Capital Goods sector dominated turnover accounting for a joint contribution of 52%.
Asia Securities said market extended its rally for the fourth consecutive session with the ASPI closing above the 8,900 level for the first in history as strong buying support from HNI and retail investors in EXPO and HAYL outweighed price declines in CLC.
It said following Wednesday›s mild profit-taking, the ASPI commenced the session hovering around 8,800; however, surpassed the level within the first thirty minutes of trading as investors extended their buying interest on the back of ongoing positive momentum in the market.
The index breached the historic 8,900 level as the session progressed mainly due to a strong buying spree in EXPO and HAYL, and eventually closed at an all-time high of 8,920.71, surpassing its previous high of 8,812.01 in January.
«We note that EXPO currently trades at a TTM P/E of 14.9x while HAYL trades at a TTM P/E of 7.9x,» Asia said.
CLC, which witnessed a rally on Wednesday, recorded price losses during the session.
NDB Securities said indices closed in green as a result of price gains in counters such as Expolanka Holdings, Hayleys and LOLC Holdings.
It said high net worth and institutional investor participation was noted in LION Brewery Ceylon, Hayleys and HNB non-voting. Mixed interest was observed in LOLC Holdings, Dipped Products and Sanasa Development Bank whilst retail interest was noted in Browns Investments, Lanka Orix Finance and Expolanka Holdings.
The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 19.44%.
The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys), whilst the sector index increased by 1.91%.
LOLC Holdings, Hatton National Bank non-voting and Browns Investments were also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 18.50 (3.66%), closing at Rs 523.75, whilst foreign holdings decreased by 235,978 shares. The share price of Hatton National Bank non-voting recorded a gain of Rs. 13 (11.30%) to close at Rs 128. The share price of Browns Investments appreciated by Rs. 0.20 (2.67%) to close at Rs. 7.70.
