Commercial Leasing and Finance and LOLC Finance amalgamation boosts CSE

by Hiran H.Senewiratne

CSE activities yesterday started on a positive note especially because of the much-awaited amalgamation of two major financial institutions, namely, Commercial Leasing and Finance and LOLC Finance. This gave a boost to the bourse’s momentum but later mixed reactions were indicated due to selling pressure in two major index heavy entities, Expolanka Holdings and LOLC Holdings, stock analysts said.

It is said that more than 95 per cent of companies have announced their quarterly results and most companies have reported positive earnings despite the current pandemic situation in the country as well as globally. This has positively impacted the investor.

Further banking sector counters indicated a price appreciation owing to positive earning hopes and dividend payments, stock market analysts said. The banking sector was the major contributor to the All- Share Price Index. Those banks were, Sampath Bank (28 points), Commercial Bank (13.8 points), HNB (9.4 points) and NDB (5.3 points).

Major negative contributors to the All- Share Price Index were LOLC Holdings (13.6 points), JKH (7.4 points) and Melstacorp (6.7 points).

Amid those developments both indices showed mixed reactions. All- Share Price Index went down by 12.42 points and S and P SL20 rose by 5.52 points. Turnover stood at Rs 3.8 billion with a single crossing. The crossing was reported in Renuka Hotel PLC, which crossed 2.3 million shares to the tune of Rs 198.5 million, its shares traded at Rs 93.

In the retail market seven companies that mainly contributed to the turnover were; Commercial Leasing and Finance Rs 772 million (15.6 million shares traded), LOLC Finance Rs 703 million (25.6 million shares traded), Browns Investments Rs 271 million (19.2 million shares traded), Expolanka Holdings Rs 219 million (691,000 shares traded), Sampath Bank Rs 182 million (5.2 million shares traded), Guardian Capital Partners Rs 167 million (5.2 million shares traded) and LOLC Holdings Rs 74.5 million (65,000 shares traded). During the day 133 million share volumes changed hands in 35000 transactions.

It said high net worth and institutional investor participation was noted in Melstacorp, JKH and LOLC Holdings. Mixed interest was observed in Expolanka Holdings, Sinhaputhra Finance and Softlogic Life Insurance, while retail interest was noted in LOLC Finance, Commercial Leasing & Finance and Browns Investments.

The foreign sales so far this year has been Rs 3.4 billion. In 2021, the Sri Lanka stock market suffered a net foreign outflow of Rs 50 billion. Analysts had predicted that economic concerns would drag the market from time to time until the government finds a sustainable solution to the country’s looming debt crisis.

Yesterday, the US dollar rate was quoted at Rs 202.27, which was the controlled price of the Central Bank. The Central Bank has imposed a ceiling of Rs 203 per US dollar. However, financial market sources revealed that the actual price of a US dollar would be more than Rs 250. Former Prime Minister Ranil Wickramesinghe predicted at a forum that the US dollar rate would likely go beyond Rs 300 towards the end of the year.