AMF and AFC in landmark merger; CSE indices up

By Hiran H.Senewiratne 

Two of Sri Lanka’s oldest and most respected finance companies, Associated Motor Finance Company PLC (AMF) and Arpico Finance Company PLC(AFC) joined strengths officially at the CSE on April 1.

The months-long process for this landmark merger was officially completed in full compliance with the protocols. The merged entity will forge ahead as AMF, with the combined strengths of the two companies and a clear vision to rise high in Sri Lanka’s financial services industry, stock market analysts said.

CSE gained further momentum yesterday with both indices up, amid improved turnover reaching  Rs. 5.16 billion with five crossings. The market  witnessed buying interest for several selected stocks, especially manufacturing sectors counters. Both indices moved upwards. All Share Price Index was up by 22.99 points and  S and P SL20 up by 22.33 points. 

Crossings took place in HNB, which crossed 13.36 million shares to the tune of Rs. 1.73 billion, its shares trading at Rs. 130, Expolanka one million shares crossed for Rs. 47.5 million and its shares traded at Rs. 47.40. Haycarb 300,000 shares crossed for Rs. 34.5 million, its shares traded at Rs. 115, Royal Ceramic 101,000 shares crossed for Rs. 32.3 million, its shares traded at Rs. 320 and LOLC 68000 shares crossed for Rs. 20.4  billion, its shares fetching Rs. 300.

In the retail market, five companies that contributed to the turnover were, Dipped Products Rs. 528 million (9.3 million shares traded). Royal Ceramic Rs. 324 million (1.03 million shares traded), Hayleys Rs. 283 million (3.8 million shares traded), Expolanka Rs. 218 million (4.5 million shares traded), LOLC Rs. 203 million (675,000 shares traded). During the day 97.7 million share volumes changed hands in 25530 transactions. 

Manufacturing sector counters witnessed some appreciation of its stocks during the day.  Melstacorp contributed the highest points to the All Share Price Index, which was 5.33 points. Its share price moved up by Rs. 2 or 4 percent. Its share started trading at Rs. 47 and at the end of the day it moved to Rs. 49. Royal Ceramic contributed 4.63 points to the All Share Price Index. Its shares appreciated by 6 percent or Rs. 18. Its shares started trading at Rs. 301 and at the end of the day they moved up to Rs. 320 and HNB, contributed four points to the All Share Price Index. Its shares moved up by Rs. 4 or 3 percent. Its shares started trading at Rs. 126 and at the end of the day they moved to Rs. 130.     

Even though the current positive movement in the market is encouraging, it is believed that market momentum will gather pace after the Sinhala and Tamil New Year holidays. 

Consequently,  it is better for   investors to start accumulating a well-diversified portfolio of stocks which are cash generative, have strong earnings and revenue growth attributes and possess the ability to outperform over the longer term, market analysts said.