Bourse welcomes February on feeble note; profit-takings in blue chips

By Hiran H.Senewiratne

The CSE began February on a feeble note with both indices down, despite a healthy turnover level. Yesterday the stock market commenced its daily trading on a negative note and that trend continued until the end of the day, with massive profit-takings noted in blue chip companies, especially the Softlogic Group of companies and Expolanka holdings, market analysts said.

According to market analysts, following a moderate gap of 79 points, the ASPI reversed course due to price declines in index-heavy counters and traded negative for the rest of the session to close with a loss. On similar lines, the more liquid S&P SL20 index also trended downwards on price declines.

The All- Share Price Index went down by 338 points and S and P SL20 declined by 151 points. Turnover stood at Rs 8.9 billion with four crossings. Those crossings were reported in Ceylinco Insurance, which crossed 100,000 shares to the tune of Rs 145 million and its shares traded at Rs 1450, Melstacorp 500,000 shares crossed to the tune of Rs 29.5 million, its shares traded at Rs 59, LOLC Finance 800,000 shares crossed for the tune of Rs 22.4 million, its shares fetching Rs 28 and Softlogic Life Insurance 120,000 shares crossed for Rs 21.6 million, its shares trading at Rs 180.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 2.2 billion (6.9 million shares traded), Softlogic Life Insurance Rs 854 million (5.2 million shares traded), LOLC Finance Rs 564 million (20.3 million shares traded), Browns Investments Rs 420 million (35.3 million shares traded), Softlogic Capital Rs 407 million (23.3 million shares traded), Renuka Agri Foods Rs 342 million (44.5 million shares traded) and Melstacorp Rs 338 million (5.7 million shares traded.

During the day price depreciations were reported in the Softlogic Group of companies, which resulted in other blue-chip companies witnessing heavy selling pressure. Softlogic Life Insurance share price depreciated by Rs 41.50 or 23 per cent. Its share price moved down to Rs 141.50 from Rs 183, Softlogic Capital share price depreciated by 15 per cent or Rs 2.80. Its share price went down to Rs 15.80 from Rs 18.60 and Softlogic Holdings share price fell by Rs 4 or five per cent. Its shares started trading at Rs 70.10 and at the end of the day they moved to Rs 66.`10.

The stock market company with the highest market capitalization, Expolanka Holdings share price depreciated by Rs 30.50 or 9 per cent. Its share price fell to 314.50 from Rs 345. LOLC shares also saw a price drop. Its share price dropped by Rs 75 or six percent. Its share price depreciated to 1118.50 from Rs 1193.50. During the day 262 million share volumes changed hands in 67000 transactions.

It is said high net worth and institutional investor participation was noted in Vallibel One, Softlogic Holdings and JAT Holdings. Mixed interest was observed in Softlogic Life Insurance, Expolanka Holdings and Lanka IOC, while retail interest was noted in Softlogic Capital, Renuka Agri Foods and Browns Investments.

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance), while the sector index lost 2.55 per cent. The shares of Softlogic Life Insurance lost Rs. 41.50 to close at Rs. 183. The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover while the sector index decreased by 1.44 per cent.

Yesterday the US dollar was quoted at 202.45, which was the Central Bank controlled price. The actual market price is more than Rs 250, market sources said.