CSE brought down once again by ill-liquid stocks

By Hiran H.Senewiratne

CSE fell for the third consecutive session yesterday, dragged down by shares like Commercial Leasing and Finance and LOLC Finance in thin trade, brokers said. On previous days Commercial Leasing and Finance and LOLC Finance, being index heavy stocks, were traded heavily. Those stocks are ill-liquid shares and people tend to purchase them in a big way. However, with the realizing of profits by share-holders prices also depreciate, dragging both indices to negative territory, market analysts said.

Commercial Leasing and Finance share prices depreciated by nine per cent or Rs 2.20. Its shares started trading at Rs 25.70 and at the end of the day they dropped to Rs 25.50, thus contributing 152 negative points to the All – Share Price Index and the LOLC Finance share price depreciated by 21 per cent or Rs 10.70. Its shares started trading at Rs 50.90 at the end of the day they dropped to Rs 40.20, contributing 25 negative points to the All- Share Price Index.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 263 points and S and P SL20 declined by 25.7 points. Turnover stood at Rs 7 billion sans crossings.

In the retail market, top seven companies that mainly contributed to the turnover were, Browns Investments Rs 2.3 billion (162 million shares traded), Expolanka Holdings Rs one billion (3.6 million shares traded), Commercial Leasing and Finance Rs 825 million (19.9 million shares traded), LOLC Finance Rs 356 million (14.8 million shares traded), LOLC Holdings Rs 287 million (296,000 shares traded), Brown and Company Rs 173 million (615,000 shares traded) and Access Engineering Rs 169 million (5.3 million shares traded). During the day 305 million share volumes changed hands in 45000 transactions.

The IPO for Sri Lankan multinational software solutions provider, hSenid, opened yesterday, aimed at raising Rs. 691 million and was oversubscribed.

Further, Browns Investments 99- year lease- holding right identified its plot at Port City by entering into an indenture of lease on December 2, 2021 to initiate three major projects within the Colombo Port City Economic Commission Zone. Those projects would be, Colombo International Finance Center (US $ 102 million), Colombo Marine Development Project (US $ 55 million) and Colombo City Marine Development Project (US $ 43 million). Total cost of those projects would be US $200 million).

Yesterday, the US dollar rate was quoted at Rs 200.44, which was the Central Bank controlled rate.