Share index touches new peak; CLC becomes market heavyweight

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COLOMBO – Sri Lanka stock index touched a fresh record closing high on Wednesday (3) as investor sentiment was bullish on the risky assets on earning hopes after companies reported better-than-expected profits.

The gain was led by Commercial Leasing and Finance (CLC) and the day’s gain saw the company becoming the market heavyweight valued at Rs 452 billion, surpassing Expolanka holdings, a cross-border freight forwarder.

The Colombo benchmark All Share Price Index (ASPI) hit a fresh record high of 10,510.85 points in the early session, but closed 1.37% or 140.31 points higher at 10,412.02, its fresh all-time closing high.

The S&P SL20 index of more liquid stocks, however, fell 0.33% or 11.96 points to close at 3,656.60.

“Commercial Leasing and Finance boosted the market. Investors are bullish on all the September quarter earnings,” a broker said.

“Since interest rates are low, this trend will continue until the end of the earning season.”

The day’s turnover was Rs 6.1 billion, well above this year’s average daily turnover of over Rs 4 billion.

Foreign investors sold a net Rs 21 million worth of shares, extending the net foreign inflow to Rs 46.02 billion  so far this year. Brokers had expected foreign investors to exit after Moody’s Investor Service downgraded Sri Lanka’s sovereign credit rating last week to near default category.

LOLC Finance and Buki Darah also contributed to the ASPI gain.

Commercial Leasing and Finance, which accounted for more than 90% of the day’s gain, jumped 20.34% to close at Rs 70.00 a share.

LOLC Finance gained 5.10% to close at Rs10.30 a share and Buki Darah gained 3.89% to close at Rs 401.00.

Market heavy weights, Expolanka holdings fell 1.81% to close at Rs 203.25.

The bourse saw 86 stocks gaining against 101 falling on Wednesday.

-economynext.com

 

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