New stock George Steuart Finance (GSF), which began trading eight market days ago, has contributed the most to the rise in the Colombo’s main index, the All Share Price Index (ASPI). The recent surge in the Colombo stock market has triggered mixed views on whether this is a deliberate attempt to push the ASPI up by manipulating low cap stocks, analysts say.
“During these eight days the ASPI has risen 4.27 per cent or 241.77 points. GSF is the number one contributor to this increase with 0.99 percent or 55.85 points,” an analyst said.
JKH contributed 0.46 per cent or 26.18 points to ASPI’s increase in the same period while Commercial Bank, another highly capitalized stock, contributed 0.21 per cent or 11.81 points. Analysts say that GSF’s contribution to the ASPI’s rise was at an alarming rate and it seems like a coordinated attempt to push the index up. Friday saw GSF trade 23 times on just 130 shares which brought about Rs. 156,000 to the total turnover at Rs. 1.36 billion.
Another analyst said that the unprecedented bull-run in the market with the entry of Dr. Nalaka Godahewa as the new Chairman of Securities and Exchange Commission (SEC) in late August has drastically changed the sentiment in the market, but nothing else has changed. “Now it’s perceived as a friendly SEC, which is a reason for the rise in the ASPI,” he said.