CSE Highs and Lows

By Imesh Ranasinghe

Last Monday (13), the ASPI once again ended at an all time high of 11,662 points with a net gain of 269 points as LOLC and Expolanka contributed the majority with 202 and 51 points.

“The index started on a solid upsurge but slid back slightly during the first few minutes of the session. However, as investors continued their buying spree, the market climbed steadily, reaching an all-time intraday high of 11,712 before closing at 11,662, gaining 269 points,” First Capital said on Monday.

The turnover recorded was Rs. 8 billion turnover as HNB notched the top net purchasers slot with a net inflow of Rs. 100 million and Sanasa Development Bank (SDB) the top net seller with a net outflow of Rs. 199 million.

On the same day, CSE approved the Co-operative Insurance Company for the listing of ordinary shares by way of an offer for subscription on the Diri Savi Board of the CSE. 166.5 million shares are to be offered at a price of Rs 3.60 per share, and the opening of the subscription list is set to be tomorrow (20).

Last Tuesday (14), the ASPI had a net gain of 134 ending the day at 11,796. Expolanka contributed 117 points, but the LOLC had -25 points on the ASPI.

 Top contributors in terms of turnover were Expolanka, with a turnover of Rs 1.8 billion, and SMB Leasing PLC, which recorded the top traded volume with 129 million shares traded within the day.

“As the market opened, index moved on a toned-down pace with subdued trading. However, after midday the index leaped up with vast volatility hitting an intra-day high of 11,848 and continued to remain high although it slightly dropped during the final half hour before closing for the day at 11,797, gaining 135 points,” First Capital said regarding Tuesday’s performance.

It was announced that shares of Capital Alliance Ltd. (CALT) would commence trading on the Diri Savi Board of the CSE last Wednesday (15). It was to be classified under the “financials” industry group and trade under the ticker “CALT”.

The initial public offering (IPO) was oversubscribed by 8.6 times on the opening day itself. CALT received a total of over 9,800 applications requesting shares for over Rs. 3.5 billion. A total of 329,417,884 shares of CALT will be listed on the CSE. 

The retail category was oversubscribed by 3.5 times in terms of the retail category allocation as 40% of the total shares on offer.

The IPO price of Rs. 10.00 came at a 18.64% discount to the valuation price of Rs. 12.29 that was derived by the independent valuer Ernst & Young Transaction Services. CALT offers an average dividend yield of 9.65%.

On Wednesday the ASPI had a loss of 42 points, ending the day at 11,754 as LOLC, CLC, and Expolanka shares fell.

“The index spiked to an all-time intraday high of 11,872 within the first few minutes of the trading supported by a few export-oriented counters. Afterwards, the market displayed a sharp fall as the index surpassed the psychological level of 11,800 mark. Eventually, the market managed to trade positively during the mid-day but failed to hold on to the position and closed at 11,754,” First Capital, on Wednesday, said.

People’s Merchant Finance PLC has received applications for the subscription of 78.45 million, and the issue was oversubscribed.