Expolanka Holdings’ share transaction brings some hope to bourse

By Hiran H. Senewiratne

Sri Lanka’s shares fell in mid-day trade yesterday, pulled down by JKH, after opening firmer but ended on a negative note due to profit-takings. However, an Expolanka Holdings’ crossing or arranged transaction was a foreign buying, that enabled to create some hope in the market, stock market analysts said.

‘Predominantly, global markets are also not performing due to recessionary pressure and also because of the appreciation of the US dollar against other currencies, especially in the European Union, that has resulted in declines in other markets in the world, market analysts said.

‘If the recession prevails in Europe and other countries in the region, it would impact our export oriented companies. Because, buying behaviours of those countries would drastically change and at the end it will affect local exports as well, analysts added.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 120.6 points and S and P SL20 declined by 34.7 points. Turnover stood at Rs 4.5 billion, with four crossings.

Crossings were reported in Expolanka Holdings, which crossed 7.5 million shares to the tune of Rs 1.7 billion and its shares traded at Rs 228, JKH 552,000 shares crossed to the tune of Rs 78.4 million, its shares traded at Rs 142, Dialog 6.8 million shares crossed to the tune of Rs 60.6 million, its shares fetched Rs 8.90 and Richard Pieris 883,000 shares crossed to the tune of Rs 29.3 million, its shares traded at Rs 33.20.

In the retail market top seven companies that mainly contributed to the turnover were, Lanka IOC Rs 464 million (1.6 million shares traded), Expolanka Holdings Rs 346 million (1.5 million shares traded), ACL Cables Rs 163 million (1.5 million shares traded), Renuka Agri Foods Rs 160 million (20.5 million shares traded), JKH Rs 91.3 million (148,000 shares traded), Richard Pieris Rs 89.4 million (2.8 million shares traded) and Aitken Spence Rs 79.1 million (599,000 shares traded). During the day 121 million share volumes changed hands in 27000 share transactions.

Yesterday, the Central Bank- announced dollar buying rate was Rs 359.18 and selling rate Rs 369.93. However, the Sterling Pound has fallen to a record low against the dollar as markets react to the UK’s biggest tax cuts in 50 years. In early Asia trade, the sterling slipped just US$ 1.04 before regaining some ground at around US $1.05.