Stock market bull run continues; ASPI hits all-time high

• ASPI reaches all-time high of 7922.66 points, surpassing previous highest of 7811.80 points on Feb. 14, 2011
• S&P SL 20 crosses 3,000-point mark, highest point since Dec. 4, 2019
• Market turnover surpasses Rs.12bn for second consecutive day
• Total number of trades top previous record with 67,153 trades

The indices at the Colombo Stock Exchange (CSE) entered new territory yesterday, breaking all the previous records, while recording over Rs.12 billion turnover for the second consecutive day, amid heightened market activity.

The benchmark All Share Price Index (ASPI) reached its all-time high index tally yesterday, closing the 10th trading day of 2021 on 7922.66 points. The previous highest points figure recorded was 7811.80 points, on February 14, 2011.

The ASPI gained 188.09 points yesterday, recording the eighth highest points gain in the CSE’s 35-year history.

NDB Securities said price gains in counters such as LOLC Holdings, Commercial Leasing & Finance and Lanka Orix Finance, were behind the ASPI’s surge yesterday.

“High-net-worth and institutional investor participation was noted in Renuka Capital, Kelani Cables and Dipped Products. Mixed interest was observed in Vallibel One, Tokyo Cement Company non-voting and Hayleys, whilst retail interest was noted in Expolanka Holdings, Browns Investments and LOLC Holdings,” NDB Securities added.

The S&P SL20 index, which features the largest and most liquid stocks listed on the exchange, also continued its upward momentum crossing 3,000 points, reaching its highest point since market on December 4, 2019, gaining 100.32 points to end the day on 3,003.30 points. 

The market continued to showcase increased investor interest with the turnover crossing Rs.12 billion for the second consecutive day, recording Rs.12.18 billion yesterday.

The consolidated turnover recorded for the 10 trading days into 2021 is Rs.83.6 billion, which is 21 percent of the full-year aggregate turnover figure recorded in 2020 and 48 percent of the aggregate turnover recorded in 2019.

The total number of trades recorded yesterday topped the previous record with 67,153 trades carried out within the day.

Since the turn of 2021, the CSE ASPI has also been among the best-performing primary indices globally, on a year-to-date (YTD) basis. As of yesterday, the CSE was the best-performing primary index listed on Bloomberg on a YTD basis, with a 16.95 percent YTD return.

However, despite the gains, foreign investors continue to be net sellers in the market. The YTD net outflow stands at Rs.1.7 billion. Last year they net sold over Rs.50 billion worth of stocks.

SL eyes to become US $ 150bn economy with investment-driven growth

By Nishel Fernando
The government is building the necessary soft and hard infrastructure for the country to become a US $ 150 billion economy, with a per capita income of US $ 7000, by attracting investments, Money, Capital Markets and State Enterprise Reforms State Minister Ajith Nivard Cabraal said yesterday.

He made these remarks at the inauguration of the 41st National Conference of Chartered Accountants in Colombo, yesterday evening. 

The size of Sri Lanka’s economy is currently estimated at US $ 84 billion, with a per capita income of over US $ 3,800.

In particular, Cabraal highlighted that a series of soft infrastructure, including the legal framework of Colombo Port City, would soon come into force, targeting foreign investments. 
He emphasised the country’s next stage of development would be driven by investments, lifting many out of the poverty and ensuring a decent living standard. 

Speaking on the role of the country’s capital market in the economic development, he said capital market should focus more on supporting businesses to raise funds to finance their expansions and growth plans in the next growth phase.

With recent record-setting performances of the Colombo Stock Exchange (CSE), where it became the best-performing exchange in the world, he noted that the country’s capital market has entered its next phase of growth. 

In particular, he emphasised that the recent achievements of the CSE have proven that the county’s capital market has depth while assuring that foreign investors would join the bandwagon shortly.

Speaking on the macroeconomic environment, he noted that the government has been able to keep key macroeconomic indicators intact while maintaining its pro-growth approach.