CSE records highest market cap

The Colombo Stock Exchange (CSE) created history on Thursday by recording the highest ever market capitalisation (the total value of the CSE) of Rs. 942.6 billion. The previous record was Rs. 938.6 billion, recorded on February 13, 2007.

Market capitalization represents the aggregate value of a company or stock. It is obtained by multiplying the number of shares issued by their current price per share. The total market capitalisation of the CSE is an aggregation of the market capitalisations of all listed companies.

On Thursday the All Share Price Index (ASPI) showed a significant upward movement by recording a growth of 2.05% to close the day at 2,944.05 while the Milanka Price Index (MPI) recorded a growth of 1.95% to close at 3,290.02. This is the highest since March 5, 2007. The turnover for the day was Rs. 1.5 billion.

On Friday the ASPI fell by 4.61 points to 2939.44 while the MPI increased by 3.46 points to 3293.48 with over Rs. 1.2 billion market turnover.

The CSE has become a booming stock exchange following the restoration of political stability with the end to the 30-year war in the country and attractive for foreign investors.

The two public issues during the past two market days, Namal Acuity Value Fund and Hemas Power, were oversubscribed on the first day of the issue. Both issues were closed on Thursday. Hemas Power offered the IPO to raise Rs. 600 million or more and was oversubscribed at Rs.20 per share by 10.30 am. It subscribed 84,221,100 shares valued at Rs. 1, 683,788,500.

Market analysts said that the strong performance in the infrastructure development and the growth potential in the economy under post conflict situation reflects this interest of investors.

The Manufacturing, banking and hotel sectors showed a very high performance during the week and six million banking sector shares were traded in the week. In the hotels sector, John Keells and Eden hotels gained. JKH attracted foreign buyers and in the week 10.6 million shares were traded. The Plantation sector performance was weak due to the continuing dispute in the sector. Foreign buying in the week recorded Rs. 1,780 million and market analysts expect this trend to continue.

The Colombo bourse has seen an exceptional growth during the year 2009, with the All Share Price Index (ASPI) recording a gain of 95.9% for the year to date, and the Milanka Price Index (MPI) recording a growth of 101.7%, year to date, making it one of the best performing markets globally. The 101.7% growth of the MPI for the year to date is another milestone for the CSE.