ASPI hits new all-time high as local investors continue to bet on dollar earning stocks

• Turnover tops Rs.10bn again
• Expolanka back on top as highest market cap company

The Colombo Stock Exchange’s (CSE) benchmark All Share Price Index (ASPI) hit a new all-time high yesterday as investors continued to bet on blue chip stocks despite the overall economic gloom the country is experiencing due to a shortage of dollars amid a pandemic and last week’s policy rate hike by the Central Bank. 

ASPI rose 164 points or 1.87 percent to close at 8, 920.71, hitting a new record high, surpassing the previous high of 8, 812 points on January 27, 2021, while the more liquid S&P SL20 index gained 143 points or 4.5 percent to close at 3, 327.08.

The day’s turnover was Rs.10.5 billion, well over this year’s average daily turnover of Rs.3.9 billion. The index and the overall market activity have been on an upward trajectory this week. From 8,240 points recorded on August 20 (Friday), ASPI witnessed a steady upward momentum reaching 8479.65 points on Monday (23), 8,667.95 on Tuesday (24), and 8756.63 on Wednesday (25).

Industrial conglomerates Hayleys PLC and Expolanka Holdings PLC were the top boosts to the index yesterday, rising 18.1 percent and 22.8 percent respectively. Expolanka yesterday again dethroned LOLC Holdings PLC as the highest market cap company on the CSE with a significant margin amid whopping price gains.  “Despite the higher fatalities and the fast spread of COVID-19 in the country, local stock investors, both retailers and high net wroth investors alike, continue to be bullish on the market, particularly on companies which earn significant dollar incomes,” a stockbroker on the grounds of anonymity told Mirror Business.

However, foreign investors did not appear to share the optimism of local investors as they continued on their selling spree offloading shares worth Rs.359.7 million, yesterday, to end up as net sellers.