Bourse turns volatile and negative but turnover hits Rs. 6 billion

By Hiran H.Senewiratne

The CSE lost its winning streak in terms of the benchmark index, but investors remained bullish propelling the turnover to a healthy Rs. 6.billion with over 252 million shares traded yesterday.

However, during the day the market was volatile and remained negative. During the latter part of the day the market was dragged down by index heavy LOLC Group company, Commercial Leasing and Finance, stock market analysts said.

Commercial Leasing and Finance shares witnessed heavy selling pressure and its share price depreciated by 18 percent or Rs 11.10, thus contributing 157 negative points to the All- Share Price Index. Its shares started trading at Rs 61.90 at the end of the day, its price dropped to Rs 50.80.

Amid those developments both indices indicated mixed reactions. All Share Price Index went down by 157.58 points and S and P SL20 was up by 10.68 points. Turnover stood at Rs 6.48 billion with two crossings. Those two crossings were reported in HNB, which crossed 700,000 shares to the tune of Rs 105 million and its shares traded at Rs 150 and NDB 400,000 shares crossed for Rs 28.2 million, its shares traded at Rs 70.50.

In the retail market top seven companies that mainly contributed to the turnover were, Browns Investments Rs 1.2 billion (85.3 million shares traded), Expolanka Holdings Rs 825 million (2.9 million shares traded), Commercial Leasing and Finance Rs 754 million (14.5 million shares traded), Vallibel One Rs 520 million (6.9 million shares traded), LOLC Finance Rs 285 million (11 million shares traded), Softlogic Life Insurance Rs 238 million ( 5.7 million shares traded) and LOLC Holdings Rs 150 million (153,000 shares traded) During the day 252 million share volumes changed hands in 49000 transactions.

It said high net worth and institutional investor participation was noted in LOLC Holdings. Mixed interest was observed in Expolanka Holdings, Vallibel One and Brown & Company, while retail interest was noted in Browns Investments, Softlogic Capital and Lanka Orix Finance.

After witnessing a strong first half, the ASPI reversed its intra-day gains, led by a pull-back in heavyweights Commercial Leasing and Finance and LOLC Finance and closed out the session with modest losses, while the more liquid S&P SL20 index held steady ground to continue its upward trend for the eleventh consecutive session and supported by price gains in Expolanka, LOLC, Vallibel One and Browns.

Softlogic General Insurance will go for an IPO. It will open on December 16 and will issue 120 million shares at Rs 7.90 per share value to raise Rs. 948 million.

Yesterday, the US dollar rate was quoted at Rs 201.93, which was an artificially controlled price of the Central Bank to prevent price escalations in essential imported items. At present the actual US dollar rate is sky-rocketing, which is about to touch more than Rs 250.