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CSE on the uptick despite October’s inflation hike

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By Hiran H.Senewiratne

CSE activities were bullish and positive yesterday despite Sri Lanka’s nationwide inflation in October 2021, determined under the National Consumer Price Index (NCPI), rising to 8.3 from 6.2 per cent recorded in September, stock market analysts said.

The Department of Census and Statistics released their report, where NCPI for all items for the month of October 2021 increased to 150.6 from 147.5 during the previous month. The inflation for the month of October 2021 was mainly due to the higher price levels prevailing in both food and non-food groups.

Further, LOLC Holdings off the floor Rs 41 billion transactions that occurred when LOLC Holdings last week completed the transfer of the shares of three finance companies to LOLC Ceylon Holdings Ltd. (LOCH) gave some impetus to the stock market, analysts said.

Amid those developments, substantial gains were recorded in LOLC Holdings, Bogala Graphite, ACL Cables, Kelani Cables, Watawala Plantations and Central Industries. Both indices moved upwards. The All- Share Price Index went up by 111.36 points and S and P SL20 rose by 57.62 points. Turnover stood at Rs 6.6 billion with two crossings. Those crossings were reported in LOLC Holdings, where 140,000 shares crossed to the tune of Rs 115 million, its shares traded at Rs 811 and Browns Investments 150,000 shares crossed to the tune of Rs 30.6 million, its shares traded at Rs 204.

In the retail market top seven companies that mainly contributed to the turnover were, LOLC Holdings Rs 807 million (968,000 shares traded), Browns Investments Rs 601 million (52.8 million shares traded), LOLC Finance Rs 546 million (20.1 million shares traded),Bogala Graphite Rs 536 million (four million shares traded), Expolanka Holdings Rs 513 million (2.2 million shares traded), ACL Cables Rs 278 million (3.3 million shares traded) and Sierra Cables Rs 211 million (14.7 million shares traded). During the day LOLC gained by 16.4 or Rs 126 per share. Its share price moved to Rs 907 from Rs 768.

During the day the stock market witnessed a price appreciation in the capital goods sector. Bogala Graphite share prices appreciated by 24 percent or Rs 27.75. Its share price moved to Rs 144.25 from Rs 116.25, ACL Cables share price moved 11 per cent or Rs 8.50. Its share price moved to Rs 86.60 from Rs 78.10, Central Finance recorded a Rs 20 or 11 per cent gain. Its share price shot up to Rs 203.75 from Rs 183.75 and Kelani Cable’s shares appreciated by Rs 74 or 25 per cent. Its share price started trading at Rs 300 and at the end of the day it shot up to Rs 374.

Further, plantation sector counters also made significant gains in their prices. Main gainers were Agalawatta Plantation, whose share price appreciated by Rs 2.90 or eight per cent. Its shares started trading at Rs 37.30 and at the end of the day they shot up to Rs 40.70 and Watawala Plantations share price appreciated by Rs 9.80 or 10 per cent. Its share price shot up to Rs 109.50 from Rs 99.70. During the day 216 million share volumes changed hands in 4800 transactions.

Further, Sarvodaya Development Finance oversubscribed their share issue on the first day itself.

Yesterday, the US dollar was quoted at Rs 202.41, which was the controlled price of the Central Bank.



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ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

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The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

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By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

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CSE activity up, turnover weak at Rs. 1.4 billion

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By Hiran H Senewiratne 

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well.  In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.

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