CSE Highs and Lows

Following the record-breaking performances of the Colombo Stock Exchange (CSE), investors were eagerly awaiting the All Share Price Index (ASPI) to cross the milestone 10,000 mark, surpassing predictions of stock broker firms. Monday (25) saw it happening. It was indeed a historic achievement for the CSE. The turnover was over Rs. 6.8 billion and the share volume was about Rs. 235 million. 

“The index opened on a bullish note, but lost momentum shortly. Subsequently, the index regained momentum at a slow pace followed by a steady upswing during the final hour of the session as optimistic investors picked up their buying spree hitting an intraday high of 10,080 before closing for the day at a fresh all-time high of 10,047,” First Capital added. 

The main contributors to the change of the ASPI were Expolanka Holdings PLC (69.1 points), Commercial Leasing and Finance PLC (18.6 points), Vallibel One PLC (14.1 points), Royal Ceramic Lanka PLC (5.5 points), and Ambeon Capital PLC (5.4 points). 

The most active in terms of several trades were Expolanka Holdings PLC with 6,394 trades, followed by Vallibel One PLC (2,471), Ambeon Capital PLC (2,162), Hayleys Fabric PLC (2,130), and ACL Cables PLC (1,546). 

Following the recent trend, net foreign sales of around Rs. 34 million were observed on Monday. Top net foreign sales were Amana Bank PLC (Rs. 26.3 million), John Keells Holdings PLC (Rs. 23.0 million), Melstacorp PLC (Rs. 13.5 million), Commercial Bank PLC (Rs. 10.5 million), and ACL Cables PLC (Rs. 2.5 million). 

The ASPI continued its gaining trend on Tuesday (26) and Thursday (28) as well. 

On the other hand, Expolanka Holdings became the first $ 2 billion cap company in the CSE the previous trading day with the share prices closing at Rs. 209. 

Sarvodaya Development Finance (SDF) recently announced its initial public offering (IPO) to open on 23 November 2021 to potential investors for application submission. 

Managed by NDB Investment Bank, SDF is to offer​ up to 45,454,546 ordinary voting shares at a price of Rs. 22.00 per share through its IPO, resulting in a projected market capitalisation of Rs. 3.29 billion assuming full subscription at the issue price. This translates into an estimated forward PER of 16.17 for FY22 and implied TTM PER (as at 31 August 2021) of 11.02x. 

Tuesday, the initial public offering (IPO) of Lanka Credit and Business Finance Ltd. (LCB Finance), through an offer for subscription of up to 75,000,000 ordinary voting shares in the first instance and a further 50,000,000 ordinary voting shares at the option of the Board of Directors at Rs. 4 per share, which opened on the same day, was oversubscribed on the initial day itself. 

The IPO by LCB Finance received applications for over Rs. 500 million and as such, the initial issue and the further issue were closed at 4:30 p.m. on Tuesday. 

Commenting on the issue, Colombo Stock Exchange (CSE) Chief Executive Officer (CEO) Rajeeva Bandaranaike remarked: “As a well-established finance company in Sri Lanka, we are happy to welcome LCB Finance Ltd. to the Colombo Stock Exchange. The attention and interest received from the public for the IPO is encouraging for the company, indicating trust and credibility that LCB Finance has achieved. We congratulate LCB Finance on the success of the IPO and this progressive step to enter the capital market. The company marks the seventh equity listing for the year 2021 on the CSE.”