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Friday January 21st, 2022
Markets

Sri Lanka bourse hits fresh record high on first session of new year

ECONOMYNEXT – Sri Lanka’s stocks closed on Monday (03), the first working day of the year, at a fresh all time high crossing 12,600 points on short-term bullish sentiments as IPO funds flowed into the market, brokers said.

On Monday, the main stock index gained for a fourth straight session, hitting a new all-time high, helping the index to end 3.27 percent up for the day.

The index gained 399.81 points, to 12,625.82, its highest close ever.

“The market gained…..mainly due to the positive sentiments as most of the IPO money got funded into the market,” a top Colombo-based analyst told ECONOMYNEXT.

“Basically there seems to be a lot of funds flowing into the market because a lot of investors are moving from fixed deposits due to negative interest rates in the country.”

Last year CSE had 13 equity issues, raising nearly Rs. 12 billion.

ASPI rose 80.5 per cent in 2021 from the previous year’s end of 6774.22 points.

“Shares across the board are significantly moving into very high valuations so that trend is likely to continue with the significant amounts of funds in the market at the moment,” the analyst said.

S&P SL20 of the more liquid index rose 2.72 percent or 114.99 points to 4,348.24.

He said although there were concerns about the economic condition in the country, with new credit lines and swaps the negative sentiments dialed down.

“At the moment there is a very positive market at least in the short term as all the factors are positively impacting the market.”

The net foreign inflow for the day was 12.9 million rupees. The bourse suffered a net foreign outflow of 51.8 billion rupees in 2021.

On Monday LOLC Holdings and its subsidiary mainly LOLC Finance pushed ASPI to its record gain.

LOLC Finance gained 34.00 percent to close at 26.80 rupees per share, Commercial Leasing and Finance rose 13.71 percent to close at 34.00 rupees a share, while LOLC gained 4.09 percent to close at 1,209.50 rupees a share.

Expolanka, the market heavy weight, which has export and freight businesses, closed 3.06 percent higher at 386.75 rupees a share.

The day’s turnover was 9.6 billion rupees, more than twice of the previous year’s daily average of around 4 billion rupees. (Colombo/Jan03/2022)

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