News

Colombo share market gallops to all time highs

Published

4 years ago

2021/01/24

The Colombo Stock Exchange (CSE) galloped last week with the benchmark All Share Price Index (ASPI) hitting an all time high on Monday and improving on that performance on subsequent trading days to close the week at 8,463 points on Friday. The more liquid S&P Index that normally trails the ASPI also gained sharply though less so than the benchmark index.

Brokers and analysts attributed the surge to prevailing low interest rates and said that people holding funds in fixed interest instruments have seen greater potential in the stock market and have so far not been proved wrong.

“Take the case of vehicle importers,” said one businessman. “With imports disallowed, cash that would have been once used to replenish inventory becomes available for investment elsewhere. The stock market is a magnet for such funds.”

Also, many companies have resorted to a share split strategy to make their shares both more liquid and more affordable on the market.

“Take the example of a fifty-rupee share split into two. Theoretically, it should then trade at Rs. 25 a share after the split. But often it does better than that at no cost to the company that had split the share because its stated capital remains what it was,” explained and analyst.

“It’s different in the case of bonus shares or scrip issues as they are called where reserves are capitalized to pay for the new shares priced at realistic values.”

Last week the Hayleys conglomerate announced share splits in over a dozen group companies. These ranged from each share being split into ten in the parent company (Hayleys) and thriving subsidiaries like Haycarb and Dipped Products while other companies like Kingsbury split a share into two.

Brokers and analysts said that the current market surge was largely driven by the Dhammika Perera controlled Hayleys and the Ishara Nanayakkara controlled LOLC groups.

Last week Hayleys announced over a dozen share splits including in its recently acquired Singer Group companies. The majority of these involved dividing each share into two though at Singer Sri Lanka each share will be split into three.

The biggest share split ever proposed is one that is pending at EB Creasy (EBC) where each share is to be split into 100. The seldom traded EBC share is quoted at the top end of the CSE sharelist. Analysts said the massive split is intended to pump liquidity into the share and make it more affordable.

“There’s a lot of retail play in the market right now with new investors who recently took some risk doing very nicely in this bull run,” a broker said.

The CSE hit rock bottom after a seven-week closure in March last year.

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Senior Journalist Victor Ivan passes away

Published

2 hours ago

2025/01/19

Priyan

Victor Ivan, former editor of the Raavaya newspaper has passed away . He was 75 at the time of his demise.

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Landslide early warnings issued to the district of Badulla , Kandy , Kurunegala and Matale

Published

11 hours ago

2025/01/19

Priyan

The National Building Research Organization [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Kurunegala and Matale at 0800 hrs today valid until 0800hrs on Monday 20th January 2025.

Accordingly,

Level II [Amber] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Ududumbara in the Kandy district and Rattota, Yatawatta, Ukuwela and Wilgamuwa in the Matale district.

Level I [Yellow] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Badulla, Passara and Hali Ela in the Badulla district, Meda Dumbara, Phatha Dumbara and Doluwa in the Kandy district and Laggala Pallegama, Ambanganga Korale, Pallepola, Naula and Matale in the Matale district

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It is the Government’s intention to provide justice to the grieving people – Prime Minister

Published

12 hours ago

2025/01/19

Priyan

Prime Minister Dr. Harini Amarasuriya said that it is the Government’s intention to provide justice to the people who are deprived of the same due to rewards and sponsorships.

The Premier made this statement at the occasion of handing over the renovated Court of Appeal building to the public on Saturday (18). The renovations was a donation from the People’s Republic of China.

Further she mentioned that the investment made in a country’s judicial system and in the provision of facilities for the delivery of justice to the people is a reflection of the commitment made towards the country and its people. “This is not just a building, but a symbol of the delivery of justice, fairness of law, equality and dignity. Our country has suffered for decades because many were denied justice under systems of rewards and sponsorships. Our intention is to resolve those deficiencies, bring forth fairness and ensure that everyone has access to justice”, she added.

“The people must be able to keep trust and rely on the judicial system by exemplifying that the legal powers granted to judges by the Constitution are exercised fairly and providing independent and fair judgment to the parties concerned. Everyone, including women, children and the disabled community, expects justice. Their aspiration is that such a system will ensure that no one faces hardships, an attention will be paid to their mental conditions, protection from the consequences they may face when seeking justice for them or defending their rights. All actors in this process must be treated with respect. There are people who have faced hardships for years in the pursuit of justice. We ensure that they are treated fairly. They should not be subjected to intimidation, harassment or threat in the pursuit of justice”, the Premier highlighted.

The Prime Minister further expressed her gratitude to the People’s Republic of China for their generosity and support.

A group of invitees including the Ambassador of the People’s Republic of China to Sri Lanka, Qi Zhenhong, Chief Justice Murdu Fernando and many others participated in this event.