LIOC main index driver at CSE, analysts at sea

By Hiran H.Senewiratne

The CSE shares were steady in mid -market trade yesterday after gaining for seven straight sessions, however, later it became negative due to profit takings, stock market analysts said.The main revenue generated yesterday was from LIOC being the main index driver; however analysts weren’t sure as to why interest had sparked over the share.

“Yesterday was the second day in a row where Expolanka was not active and investors are waiting for signals to bring in a positive sentiment,” analysts said.

Amid those developments both indices were negative. All Share Price Index (ASPI) was highly volatile within the first hour of trade, the market was down by 46 points while the most liquid share S&P SL20 was down by 14.1 points. Turnover stood at Rs 1.6 billion without a single crossing.

In the retail market top seven companies that mainly contributed to the turnover were Lanka IOC Rs 439 million (1.9 million shares traded), Expolanka Holdings Rs 424 million (2.1 million shares traded), Browns Investments Rs 216 million (26.8 million shares traded), CIC (Non Voting) Rs 39.9 million (628,000 shares traded),Ambeon Capital Rs 36.4 million (3.7 million shares traded), LOLC Finance Rs 30.5 million (3.8 million shares traded) and JKH Rs 26.9 million (181,000 shares traded). During the day 66.4 million share volume changed hands in 16000 share transactions.

It was said that high net worth and institutional investor participation was noted in John Keells Holdings, CIC Holdings and Lanka IOC. Mixed interest was observed in Expolanka Holdings, CIC Holdings non-voting and LOLC Holdings whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and LOLC Finance.

Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers. Food, beverage and tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index lost 1.32 percent. The share price of Browns Investments decreased by Rs. 0.40 to close at Rs. 8.00.

In the Capital Goods sector it was the second highest contributor to the market turnover (due to JKHs) whilst the sector index increased by 1.84 percent. The share price of John Keells Holdings recorded a gain of Rs. 2.50 (1.70 percent) to close at Rs. 149.25. Lanka IOC, Expolanka Holdings and LOLC Finance were also included amongst the top turnover contributors.