• CLC’s market cap as of yesterday stood at Rs.539.5bn
• ASPI hits fresh all-time-high largely due to sharp price gain of CLC share
• Interestingly, CLC has public float of 0.45%
• CLC’s EPS and book value as at Sept. 30 nowhere close to current share price 

Commercial Leasing and Finance PLC (CLC), a unit of LOLC Group, yesterday became the first listed entity to cross the Rs.500 billion mark in market capitalisation on the Colombo Stock Exchange (CSE), while driving the benchmark All Share Price Index (ASPI) to an all-time high of 10,632.21 points at the market closure.

Rather illiquid CLC stock, which has become a darling among local investors, gained Rs.13.60 per a share or 19.15 percent to close at Rs.84.90 per a share yesterday. Accordingly, CLC’s market capitalisation rose to Rs.539.55 billion, accounting for 11.40 percent of overall market capitalisation of equities on the CSE.

Despite having an insignificant public float of 0.45 percent, with public 1,324 shareholders, the company on Thursday became the most valuable listed entity on the CSE, surpassing Expolanka Holdings PLC.  

The share price of Expolanka declined for the second consecutive day yesterday, despite becoming the most profitable listed entity in the second quarter.

CLC was by far the most positive contributor to ASPI yesterday, recording a turnover of Rs.991.12 million. 
The ASPI yesterday closed at 10,632.21 points, reaching an all-time high, with an increase of 2.11 percent or 220.19 points from the previous close. However, the much liquid S&P SL20 closed at 3,640.27, down by 0.45 percent from the previous close.

As of late, CLC share saw significant price gains, compared to the highest price per a share of Rs.6.70 recorded in the second of quarter ended on June 31. The CSE in a letter to CLC questioned the reasons for such price gains and in response the company denied any knowledge of undisclosed private sensitive information driving these activities.

CLC’s earnings per share as at September 30, 2021 (first half) was 29 cents and the net assets value per share was Rs.3.65.

Meanwhile, CLC’s parent LOLC Holdings was the third most valuable firm on the CSE as of yesterday. Further, two other units of LOLC Group were among the top 10 most valuable listed entities on the CSE in terms of market capitalisation. These entities together accounted for around 24 percent of overall market capitalisation of equities on the CSE.

Over 212 million shares were traded yesterday and the market turnover was recorded as Rs.5.60 billion. 

Analysts have already shown the need for free float adjusted market capitalisation for realistic depiction of the corporates traded on the CSE. However, authorities appear to have taken a liking towards misleading market capitalisation figures and artificially propped up market indices.