Expolanka Holdings-linked share transaction boosts foreign inflows

By Hiran H. Senewiratne

The CSE fell 0.24 per cent in mid-morning trade yesterday while mixed reactions were noted in both indices due to profit- takings by investors. However, net foreign inflows reported year to date were more than Rs 5.7 billion. The company with the largest market capitalization, Expolanka Holdings, saw the bulk of its shares being bought by its main shareholder S.G Holdings, which was a foreign entity, and this was the reason for increasing foreign inflows to the market, stock market analysts said. The main All- Share Price Index edged down 11.3 points and the S and P SL20 rose by 1.2 points.

Turnover stood at Rs 5.3 billion with four crossings. Those crossings were reported in Expolanka Holdings, which crossed 7.5 million shares to the tune of Rs 1.7 billion, its shares traded at Rs 230, Royal Ceramic four million shares crossed to the tune of Rs 160 million and its shares traded at Rs 40.10, Citizens Development Business Finance 660,000 shares crossed to the tune of Rs 130 million, its shares fetched Rs 200 and Melstacorp 500,000 shares crossed to the tune of Rs 28.7 million, its shares fetched Rs 57.50.

In the retail market top seven companies that mainly contributed to the turnover were Lanka IOC Rs 292 million (1.1 million shares traded), ACL Cables Rs 275.8 million (1.9 million shares traded), Expolanka Holdings Rs 275 million (1.2 million shares traded), Royal Ceramic Rs 193 million (4.7 million shares traded), Lankem Development Rs 191 million (1.7 million shares traded), JKH Rs 185 million (1.2 million shares traded) and First Capital Holdings Rs 164 million (11.3 million shares traded). During the day 136 million share volumes changed hands in 37000 share transactions.

During the day Manufacturing sector share prices appreciated and the Lanka IOC share price also appreciated because a much awaited petroleum price revision did not take place the previous night. It is said high net worth and institutional investor participation was noted in Expolanka Holdings, Sampath Bank and Richard Pieris & Company. Mixed interest was observed in JKH, Lanka IOC and ACL Cables, while retail interest was noted in SMB Leasing, HNB Finance and Browns Investments.

The Capital Goods sector was the top contributor to market turnover (due to JKH and ACL Cables), while the sector index gained 4 per cent. The share price of JKH gained Rs. 12 (8.63 per cent) to close at Rs. 151. The share price of ACL Cables appreciated by Rs. 8.50 (10.66 per cent) to close at Rs. 88.20.The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), while the sector index decreased by 0.33 per cent. The share price of Expolanka Holdings decreased by 75 cents (0.33 per cent) to close at Rs. 226.25.

Lanka IOC and Sampath Bank were also included amongst the top turnover contributors. The share price of Lanka IOC moved down by Rs. 5 (1.90 per cent) to close at Rs 257.75. The share price of Sampath Bank recorded a gain of Rs. 4.30 (11.81 per cent) to close at Rs 40.70.Separately, Kelani Valley Plantations announced a first interim cash dividend of Rs. 2.50 per share.Yesterday, the Central Bank announced the US dollar buying rate as Rs 358.94 and selling rate as Rs 369.91. Data showed that commercial banks offered dollars for telegraphic transfers at between Rs 369.45 and Rs 370 for small transactions.