ECONOMYNEXT – Sri Lanka’s main share index touched a fresh all-time high on Monday (Monday) as speculative buying in Commercial Leasing and Finance and earning hopes on a few export-related shares helped boost the index, brokers said.
The Colombo benchmark All Share Price Index gained 0.89 percent or 85.33 points to close at 9,709.14, It touched a new all-time high of 9,731.21 during the trade.
The S& P SL20 index of more liquid stocks gained 0.09 percent or 6.84 points to close at 3,5553.61
“Around 80 percent of the index gain came from Commercial Leasing and Finance share. The rest came from shares like Expolanka on their strong earning hopes,” a broker said.
“There was no fundamental reason for the gain of Commercial Leasing and Finance.”
Another broker said although the market gained, investors were maintaining a wait-and-see approach due to the sandwich Monday in the shorter-trading week and ahead of the quarterly earnings report.
Brokers are also expecting the companies to report high earnings which they predict will drive the market up for the next two months if the rates are not increased.
On October 14, the Central Bank maintained the key monetary policy rates steady calming down stock investors who were concerned about a possible rate hike. But the central bank has allowed treasury bill rates to rise since the last month.
Foreign investors sold a net 195 million rupees’ worth of shares on Friday. The market has suffered a net the foreign outflow of over 44.6 billion rupees so far this year.
The day’s turnover was 2.7 billion rupees, below this year’s average daily turnover of over 4 billion
The gain was led by Commercial Leasing and Finance, NIFL and Expolanka Holdings.
Commercial Leasing and Finance gained 16.15 percent to close at 37.40 rupees a share. However, stockbrokers said the stock only generated a 214 million rupees turnover.
Expolanka Holdings, the market heavyweight which has a significant export component in its business, gained 0.77 percent to close at 198 rupees a share.
LOLC Development and Finance gained 3.23 percent to close at 502.75 rupees a share.
The bourse saw 75 stocks gaining against 115 falling on Monday.
The most active Capital Goods Industry index contributing 34 percent to the turnover.(Colombo/Oct18/2021)