Buying interest in Expolanka and Lanka IOC shares due to biz expansions

By Hiran H.Senewiratne

Buying interest was witnessed in two of the CSE’s premier companies, Expolanka and Lanka IOC, yesterday due to business expansions in both companies, stock market analysts said.

Expolanka Holdings announced that they have acquired US- based Transa American Customs House Brokers LLC for a monetary consideration of US $ 42.5 million, while Lanka IOC announced the opening- up of 25 new fuel stations island-wide. These two announcements gave some impetus to the CSE but did not make a positive impact due to delays in getting the IMF loan for Sri Lanka, analysts said.

Over the weekend, the International Monetary Fund said a new predictable and orderly debt resolution process is needed for countries like Sri Lanka and Surinam, which are not covered by existing frameworks.

According to analysts this didn’t heavily impact market sentiment which was solely on a wait- and- see approach, until harder facts in the macro-economy hit the surface.

Sri Lanka’s shares edged down in mid-day trade. The market saw some selling pressure which moved the market to the red, an analyst said.

The All- Share Price Index was down by 117.2 points and the most liquid index S&P SL20 was down by 22.6 points. Turnover stood at Rs 1.2 billion with three crossings. Those crossings were reported in Royal Ceramic, which crossed 1.2 million shares to the tune of Rs 36.9 million and its shares traded at Rs 31, Lanka IOC 150,000 shares crossed to the tune of Rs 30 million, its shares traded at Rs 200 and Union Bank 2.7 million shares crossed for Rs 26.1 million; its shares fetched Rs 9.50.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 179 million (999,000 shares traded), Lanka IOC Rs 171 million (858,000 shares traded), Softlogic Capital Rs 55.9 million (6.1 million shares traded), JKH Rs 44.8 million (327,000 shares traded), Softlogic Life Insurance Rs 43.6 million (508,000 shares traded), Browns Investments Rs 42.2 million (seven million shares traded) and Hayleys PLC Rs 42.9 million (547,000 shares traded). During the day 56 million share volumes changed hands in 14000 transactions.

Yesterday, the Central Bank’s US dollar buying rate was Rs 358.36 and the selling rate Rs 367.92.