Heavy share sellouts in Expolanka Holdings and LOLC Group negatively impact bourse

By Hiran H.Senewiratne

CSE trading was highly volatile yesterday despite December quarterly results of listed companies showing positive performances but CSE turnover was quite healthy as on most other days. The reason being index- heavy companies, mainly two blue chip counters, recording share sellouts, stock market analysts said.

At the beginning the stock market was positive but during the latter part of the day due to heavy sellouts/profit takings, especially in Expolanka Holdings and LOLC Group, the stock market turned negative, market analysts said.

This week, the ASPI has been down 3.6 per cent or 486 points and the S&P SL20’s plunge is sharper at 4.4 per cent or 204 points. The market capitalization of the CSE has lost Rs. 285 billion to close at Rs. 5.73 trillion as opposed to Rs. 6.01 trillion last Friday.

Accordingly, both indices moved downwards. The All- Share Price Index went down by 22.5 points and S and P SL20 declined by 4 points. Turnover stood at Rs 8.4 billion with a single crossing. The crossing was reported in Expolanka, which crossed 81000 shares to the tune of Rs 29.5 million, its shares traded at Rs 362.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 1.8 billion (5.1 million shares traded), Softlogic Life Insurance Rs 787 million (4.7 million shares traded), Browns Investments Rs 477 million (30.6 million shares traded), ALC Cables Rs 266 million (2.2 million shares traded), LOLC Holdings Rs 256 million (220,000 shares traded), Agstar Rs 202 million (17.9 million shares traded) and Vallibel One Rs 159 million (1.8 million shares traded). During the day 239 million share volumes changed hands in 49000 transactions.

High net worth and institutional investor participation was noted in Chevron Lubricants, Access Engineering and Hayleys. Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and LOLC Holdings, while retail interest was noted in Browns Investments, SMB Leasing non-voting and Industrial Asphalts.

It is said the Transportation sector was the top contributor to market turnover (due to Expolanka Holdings), while the sector index lost 4.79 per cent. The share price of Expolanka Holdings decreased by Rs. 18 (4.77per cent) to close at Rs. 359.

The Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments), while the sector index decreased by 1.92 per cent.

Yesterday, the US dollar was quoted at Rs 202, which was the Central Bank controlled price. Actual price would be at the Rs 250 level, sources said.