brand logo

CSE makes comeback on hopes of new leadership

12 Jul 2022

  • Market sees highest single-day gains in last 30 days; ASPI gains 3%, S&P SL20 5%
  • Analyst notes optimistic investors waiting for confirmation on 13 July
  • Turnover below Rs. 1 bn amidst “wait-and-see” approach of investors
    By Imesh Ranasinghe  The Colombo Stock Exchange (CSE) made the highest gain in a single day on Monday (11), after a downward trend that lasted over a month, as sentiments over the hope of a new leadership drove the market up. The All-Share Price Index (ASPI) rose by 221.46 points (3.13%) to 7,302.15, while the S&P SL20 went up by 116.59 (5.19%) to 2,361.42 points at market close. The turnover stood at Rs. 811 million, with 52 million shares traded. Speaking to The Morning Business, First Capital Head of Research for Investments Fixed Income, and Equity Dimantha Mathew said that the market was up on Monday on the expected hope of change in leadership. However, he said that most of the investors were taking a “wait-and-see” approach, to gauge the change to come in the next few days, which is why turnover stood below Rs. 1 billion even though the ASPI was up by more than 200 points. “Hopefully, this positivity will continue till 13 July; once the change comes in, there could be some positivity with new hope,” he said, adding that it is still a short-lived scenario, because the underlying problems are still at large. According to him, the market will also react positively on Tuesday (12), but with a lower level of turnover. The share price of LOLC Finance PLC (LOFC) was up by 14.52% (Rs. 0.90), Odel PLC (ODEL) up by 12.72% (Rs. 2.20), Asia Asset PLC (ACAP) up by 11.11% (Rs. 0.40),  Sampath Bank PLC (SAMP) up by 10.65% (Rs. 2.80), Brown & Company PLC (BRWN) was up by 10.70% (Rs. 10.75). Other well-performing shares include Expolanka Holdings PLC (EXPO). which was up by 6.90% (Rs 11.25), and LOLC Holdings PLC (LOLC), which was up by 7.82% (Rs 28.50) Moreover, Mathew said that although there will be positive sentiment taking the market up, there are some underlying problems in the equity market with a very high level of margins.  “Selling down of these margins is definitely going to happen and the margins will be brought to 50% to regularise; it will happen gradually. So that is going to prevent a major run on the stocks, and which is why, given the economic problems, the earnings are going to be all negative,” he added. 

Kapruka

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!


More News..