“Market’s gone crazy, when will the bubble burst?”, asks broker
The mind-boggling on the Colombo Stock Exchange which on Friday drove the benchmark All Share Price Index up by 291.34 points – “perhaps the biggest ever single day gain,” a broker said, has left brokers, market players and investors stunned.
“The market’s gone crazy,” a leading broker said requesting anonymity. “It’s an ever-growing bubble and nobody can say when it will burst. It is difficult to sustain this kind of momentum without foreign and institutional buying.”
Mr. Niroshan Wijesundera, the head of marketing at the CSE, said that Friday’s peak of the ASPI had fallen a little short of the highest ever 7,811 achieved on Feb. 14, 2011.
But brokers speaking from memory reckoned that the Rs. 12.46 billion turnover was among the highest ever achieved without special transactions like takeovers etc. done on the trading floor.
While some analysts said that the bull run was without any scientific basis, Wijesundera said it was largely retail driven.
“The very low prevailing interest rates would have influenced fund movement to the stock market,” he said. “Also, global markets are moving up.”
Brokers said that that Friday’s upward momentum was fueled largely by the LOLC and Hayleys groups with LOLC Holdings which has been moving up for the past several days seeing its share price up Rs. 45.25 from the previous close with over 5.64 million shares traded traded. The counter generated a turnover of Rs. 1.17 billion.
LOLC is controlled by its deputy chairman, Ishara Nanayakkara and related parties, while Hayleys is controlled by Dhammika Perera. Although LOLC has paid no dividends since 2012, shareholders have been compensated with capital appreciation of its shares. The group was involved in a mega international deal last year, selling its 70% stake in Cambodia’s leading micro-finance company for Rs. 120 billion.
Haycarb, the activated carbon manufacturing subsidiary of Hayleys, saw its share gaining 72.75 to close at Rs. 757.75 on 218,609 shares traded between Rs. 685 and Rs. 737 through 479 transactions. Hayleys itself was up Rs. 21 to Rs. 491.25 and Dipped Products up Rs. 19.75 to close at Rs. 401.25 on 1.83 million shares transacted 1,157 trades.
CBSL and IFC launch National Financial Inclusion Strategy
Sri Lanka’s first National Financial Inclusion Strategy (NFIS) aunched recently, aims to make financial services more accessible, efficient, and affordable for all households and businesses in the country.
The NFIS is a joint effort led by the Central Bank of Sri Lanka—with technical and financial assistance from IFC, a member of the World Bank Group—under the IFC-DFAT Women in Work program. The development of this strategy was a multi-stakeholder effort supported by the government of Sri Lanka.
“The National Financial Inclusion Strategy symbolizes our country’s commitment towards a better and inclusive Sri Lanka that will benefit all individuals and enterprises. I believe this strategy will complement the Government’s efforts to minimize the provincial income disparities, urban-rural inequalities, and to promote inclusive growth,” said Mahinda Rajapaksa, Prime Minister of Sri Lanka.
“More importantly, this strategy prioritizes future generations, having identified financial literacy as a key pillar. The proposal to strengthen the national curriculum in this area is a positive step. Investing in the education of our younger generation is the most significant investment we can make as a nation, as this will be a particularly helpful approach to the systematic correction of the financial habits of Sri Lankans,” the Prime Minister said.
HNB – Havelock City partnership offers exclusive Ezy Pay Home Loans facility
HNB PLC has partnered with Havelock City mixed-use development project to offer prospective homeowners of state-ofthe-art luxury apartments in Stratford and Melford Towers (Phase 3 – COC certified) and Peterson and Edmonton Towers (Phase 4) with the exclusive Ezy Pay Home Loans facility.
The partnership is set to offer customers the unprecedented opportunity to make a payment of only 20% and immediately occupy the limited units available in Phase 3 of the project or invest in apartments available in Phase 4, scheduled to be completed by May 2021. Further, Havelock City will take on the customer’s interest payment for one year.
“We have witnessed an increase in the demand for apartments and are aware that there is a limited stock of units available in the heart of Colombo. Therefore, we hope that this partnership with Havelock City will offer our customers looking to invest in a home of their own the facility to either move into an apartment immediately or invest in a home of their dreams,” HNB Head of Personal Financial Services, Kanchana Karunagama said.
Prospective homeowners can make use the bank’s flexible repayment options, such as the Step-up facility, which offers a repayment option in line with the customers evolving income. Customers can also obtain a maximum repayment period of 25 years for the loan facility for an attractive interest rate starting from just 7%.
DPL lends a hand to children in Monaragala Rubber Farming Communities
As part of its ongoing efforts to empower and uplift the livelihood of its farmer co-operative societies, Dipped Products PLC (DPL) distributed school bags to the children of 1,500 smallholder rubber farmers for the 10th consecutive year, under its flagship Firstlight CSR project.
This year’s distribution recorded the largest donation of school bags, which was nearly a two-fold increase from the previous year, bringing the total value of the distribution up to nearly Rs. 1 million.
Taking place at the Pinwatta Bodimalu Viharaya in Medagama, Monaragala, this latest distribution marks the Company’s continued efforts to support the smallholder rubber farming communities, by ensuring that their essential needs are looked after.
“Especially in this time of economic uncertainty, with the nation facing significant challenges and hardships, it is truly touching to see the positive impact which we continue to have on the underprivileged smallholder rubber farming communities. We believe that programmes like Firstlight hold the key to enhancing the livelihoods of our 1500-strong rubber farmers, providing them with an improved quality of life, whilst paving the way to open up new opportunities and a brighter future. This is why, with the enthusiastic response we have received over the years, we have now also expanded this school bag distribution to include the District of Kegalle,” Dipped Products Deputy Managing Director, Pushpika Janadheera said.
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