Foundation system

Founding Chairman, Nippon Donation Foundation, hoping to invest in several projects in Sri Lanka – The Island

By Hiran H. Senewiratne

The CSE bounced back into positive territory yesterday and held at Rs. an increase in the profitability of revenue-generating exporting companies, stock analysts said.

Merchandise export revenue is said to have increased by 20% year-on-year (YoY) in June 2022. According to statistics released by Sri Lanka Customs, revenue rose from 980.2 million US dollars in May at US$1,208.2. million in June, giving some boost to plantation- and export-focused businesses, market analysts said.

This growth in merchandise export earnings is the result of increased earnings from the export of garments and textiles, rubber and coconut products, food and beverages, and fruits. sea, said the EDB. Apart from that, the demonstration of some political stability also allowed the CSE to be in a good position and investor sentiment favorably improved in yesterday’s trading.

Amid these developments, the stock market was positive throughout and both indexes rose. The All-Share Price Index rose 74.03 points and S and P SL20 rose 16.23 points. The turnover amounted to Rs 1.59 billion with a single crossing. The crossing was reported in JKH, which crossed 509,000 shares at Rs 61.2 million, with its shares trading at Rs 120.25.

In the retail market, the top seven companies that primarily contributed to revenue were; Lanka IOC Rs 355 million (3.9 million shares traded), Expolanka Holdings Rs 174 million (839,000 shares traded), Dipped Products Rs 144 million (4.4 million shares traded), Hayleys Fabrics Rs 84.2 million (92.3 million shares traded), Browns Investments Rs 68.5 million (9.6 million shares traded), Richard Peiris Exports Rs 40.3 million (43,000 shares traded) and Lankem Development Rs 38, 8 million (4.1 million shares traded). During the day, 65 million volumes of shares changed hands in 20,000 transactions.

The high net worth and the involvement of institutional investors are said to have been noted. Mixed interest was seen from Lanka IOC, Expolanka Holdings and Balangoda Plantations, while retail interest was noted from Kotagala Plantations, Browns Investments and Lankem Developments.

The food, beverage and tobacco sector was the main contributor to market revenue (thanks to Kotagala Plantations and Browns Investments). The energy sector was the second largest contributor to market revenue (due to Lanka IOC), while the sector index increased by 4.03%. Lanka IOC’s share price rose by Rs. 3.90 (4.81%) to close at Rs. 84.90. Lanka IOC and Expolanka Holdings were also among the top revenue contributors. Yesterday, the Central Bank announced the buying rate for the US dollar at Rs 357.16 and the selling rate at Rs. 368.41. Therefore, it is visible that the Rupee is now stabilizing thanks to the cautious policies adopted by the Central Bank, financial sources said.