CSE plunges due to profit-takings in LOLC Group companies and Expolanka Holdings

By Hiran H.Senewiratne

The CSE suddenly dropped yesterday due to profit- takings in the LOLC Group of companies and Expolanka Holdings but on the previous day the CSE sustained its bullishness disregarding political and economic concerns with both indices up by over 1 per cent and above average turnover, stock market analysts said.

Index heavy LOLC Group of companies and Expolanka Holdings pulled the market downwards. LOLC Holdings contributed 35 negative points, LOLC Finance 11 negative points and Commercial Leasing and Finance ten negative points to the All- Share Price Index.

The All- Share Price Index fell by 42.4 points and the S&P SL20 went down by 6.46 points. Turnover improved to Rs. 6.48 billion involving 302.5 million shares without a single crossing. Expolanka share price went down 0.3 per cent to Rs. 375.75 from Rs 377 with market capitalization crossing Rs. 737 billion.

Capital Alliance, which started trading for the first time, saw its Rs 10 share price appreciating by 107 per cent or Rs 10.70 to Rs 20.70. Further, Hayleys share price appreciated by Rs 8 or seven per cent to Rs 126 from Rs 118.

In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Rs 1.54 billion (4.1 million shares traded), Capital Alliance Rs 659 million (31.7 million shares traded), Browns Investments Rs 574 million (40.9 million shares traded), Hayleys Rs 440 million (3.6 million shares traded), Commercial Bank Rs 416 million (5.2 million shares traded), ACL Cables Rs 239 million (2.2 million shares traded) and Brown and Company Rs 208 million (592,000 shares traded). During the day 302 million share volumes changed hands in 56879 share transactions.

High net worth individual investor Imtiaz Buhardeen has increased his stake in Shaw Wallace Investments Ltd. (KZOO) to over 10% this week.

He reached the 10 per cent threshold after acquiring 3.295 million shares of KZOO (formerly Renuka Capital PLC) at an average price of Rs. 12.49 per share or Rs. 41 million. His 10.18% holding is via Almas Organization Ltd. (16.69 million shares) and Carlines Holdings Ltd. (1 million shares) according to a disclosure filed with the Colombo Stock Exchange. He becomes the second largest shareholder of Shaw Wallace Investments, controlling (51%) held by Renuka Enterprises Ltd.

Sri Lanka’s Resus Energy will sell Rs 1.2 billion of debentures with maturities of up to 10 years to be listed on the CSE, Fitch Ratings said, giving them a rating of ‘A+(lka)’. Resus sells power to state-run Ceylon Electricity Board.

Sarvodaya Development Finance Limited started trading at the Colombo Stock Exchange following an initial public offer which raised a Rs one billion.

“Sarvodaya Development Finance Limited (SDF)which is part of the Sarvodaya Movement in Sri Lanka is the first impact investment opportunity to come to the public market, chairman, CSE Dumith Fernando said at a bell- ringing ceremony.

Yesterday, the US dollar was quoted at Rs 203.41, which was the Central Bank controlled price. The actual market rate would be more than Rs 250.