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.
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