LOLC Development Finance leads market activity, analysts taken by surprise

by Hiran H. Senewiratne

Share trading at the Colombo Stock Exchange (CSE) was positive overall yesterday and one of the LOLC subsidiaries LOLC Development Finance Plc shares were trading heavily thus creating an ‘artificial’ effect on the stock market, analysts said.

“Due to the illiquid nature, its share price appreciated by 25 percent or Rs 26.25. Its share price started at Rs 105 and at the end of the day it moved to Rs 131.25, which was an unprecedented appreciation of its share price the previous day as well. Its share price moved up without any reasons, stock market analysts said.  

LOLC Development Finance total shares issued to the public was 238 million out of which 99.9 percent held by LOLC group, while  263.754 shares were available for the public to trade. Thus LOLC Development Finance became  the highest contributor for the All Share Price Index yesterday with 14 points out of 17.81 points.

Amid those developments, both indices moved up. All Share Price Index up by 17.81 points and S&P SL20 up by 11.55 points. Turnover stood at Rs 3.96 billion with a single crossing. The crossing took place in Windforce , which crossed 103.6 million shares to the tune of Rs 1.89 billion and its share price traded at 18.20.

In the retail market top five companies that contributed to the turnover were Expolanka Rs 667.6 million (12.9 million shares traded), LOLC Rs129.7 million (320,000 shares traded), Dipped Products Rs 106.1 million (1.96 million shares traded), Royal Ceramic Rs 99.6 million (2.67 million shares traded), and Hayleys Rs 91.4 million (1.17 million shares traded).

Expolanka is the highest traded company in the stock market with 30 million shares traded during the day. Its share price appreciated by 3.8 percent or Rs 1.90. At the commencement of the market its share price started at Rs 50.40 and at the end of the day it moved upto Rs 52.30. Expolanka contributed seven points to the All Share Price Index.

Windforce’s contribution to the turnover was 49 percent with its crossing and retail market activities (Rs 55 million contributed trading of 2,9 million shares) . Its crossing traded below 80 cents and Rs 2 below the market price at the commencement of its share price of Rs 19.During the day 166 million share volume changed hands in 20649 transactions. 

High net worth and institutional investor participation remained subdued during these days, according to market analysts. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Royal Ceramics, whilst retail interest was noted in Browns Investments, People’s Leasing and Finance and SMB Leasing.