CSE bounces back with turnover reaching Rs. 8 billion

By Hiran H.Senewiratne

CSE trading activities bounced back yesterday with positive investor sentiment and turnover reached a very healthy level of more than Rs 8 billion, stock market analysts said.

LOLC Group stocks should be active in the future with Chinese Foreign Minister Wang Yi expected to visit Sri Lanka presently. This is on account of LOLC related Port City development projects involving China, stock market analysts said.

LOLC General Insurance Ltd. debuted on the CSE yesterday following a successful Initial Public Offering which witnessed a 160 per cent or Rs 12.60 price appreciation of shares. Its share price shot up to Rs 20.40 from Rs 7.90, thus contributing 33 points to the All-Share Price Index.

The shares of the company amounting to 1.2 billion were listed with security code of LGIL-N-0000 on the Diri Savi Board of the CSE and will be classified under ‘40301040 – Property & Casualty Insurance’ sector. The IPO, aimed at raising Rs. 948 million, drew 12,206 applications requesting for shares worth Rs. 11.6 billion. The offer was for 120 million shares (held by LOLC Asset Holdings Ltd.) at Rs. 7.90 each.

Amid those developments both indices were positive. The All -Share Price Index was up by 206 points and S and P SL20 up by 22 points. Turnover stood at Rs 8.2 billion with a single crossing. The crossing was reported in LOLC General Insurance, which crossed Rs 2 million to the tune of Rs 20.3 million and its shares traded at Rs 10.10.

In the retail market top seven companies that mainly contributed to the turnover were, LOLC General Insurance Rs 1.6 billion (83 million shares traded), Browns Investments Rs 1.5 billion (95 million shares traded), Expolanka Holdings Rs 608 million (1.6 million shares traded), Co-operative Insurance Rs 563 million (92.6 million shares traded), Lanka IOC Rs 301 million (four million shares traded), hSenid Rs 206 million (5.9 million shares traded) and Industrial Asphalts Rs 199 million (286 million shares traded).

During the day insurance sector counters noted a gain, especially Co-operative Finance, which appreciated its share price by 49 per cent or Rs 2.30. Its share price shot up to Rs 7 from Rs 4.70. Browns Investments share price appreciated by Rs 1.70 or 12 per cent. Its price shot up to Rs 16.30 from Rs 14.60 thus contributing 54 points to the All- Share Price Index. LOLC Holdings share price appreciated thus contributing 33 points to the All Share Price Index. Industrial Asphalts share price appreciated by 40 per cent or 20 cents. Its share price started at Rs 50 and at the end of the day it moved to Rs 70. During the day 858 million share volumes changed hands in 72000 share transactions.

It is said high net worth and institutional investor participation was noted in Commercial Bank, Melstacorp and LOLC Holdings. Mixed interest was observed in Expolanka Holdings, Browns Investments and hSenid Business Solutions, while retail interest was noted in SMB Leasing voting and non-voting and Co-Operative Insurance Company Ltd.

Separately, Dipped Products, Alumex and Hayleys Fibre announced their interim dividends of 45 cents, 20 cents and Rs. 75 cents per share respectively.

Yesterday the US dollar was quoted at Rs 202.98, which was the Central Bank controlled price. The actual US dollar rate should be Rs 250.