NIFL share price continues to do wonders at CSE

Investors bemused at the behaviour of the illiquid stock

By Hiran H.Senewiratne 

The Colombo Stock Exchange (CSE) turned negative yesterday in an apparent reflection of investor concerns over the country’s foreign reserves and debt servicing as well as behavior of one illiquid stock, which is LOLC Development Finance (NIFL), market analysis said.. 

The market initially was positive when it was started but much talked about LOLC Development Finance or NIFL significantly contributed to the All Share Price Index, but its momentum declined only 12 percent share  appreciation. However , several stock brokers  have complained to the relevant authorities due to its unprecedented price movement, market analysis said .

  The bourse ended in the red as a result of a drop in fundamental shares, wiping out the gains witnessed in the last two trading sessions, while ASPI retreated from the 19-week record high. “Index surged over the first 10 minutes of trading, reaching an intra-day high of 7,956, and thereafter, displayed a continuous downward trend, finally closing at an intraday low level. 

Due to these developments both indices moved downwards. All Share Price Index down by 18.9 points and S and P SL20 down by 28.9 points. Turnover stood at Rs 1,71 billion with a single crossing. The crossing reported in Hayleys, which crossed 380,000 shares to the tune of Rs 28.5 million and its share price traded at Rs 75.

In the retail trade top five companies that mainly contributed to the turnover were Browns Investments Rs 171.8 million (29.3 million shares traded ), Expolanka Rs 136.6 million (2.75 million shares traded), LOLC Rs 130 million (328,000 shares traded), JKH Rs 81.1 million ( 599,000 shares traded) and HNB Rs 80.5 million ( 600,000 shares traded ). 

During the day NIFL share price increased by 12 percent or  Rs 76. Its share price started trading at Rs 618.75 and at the end of the day it shot up to Rs 694.75. During the day selling pressure noted on the banking sector and its share prices dropped.

It said high net worth and institutional investor participation was noted in LOLC Holdings, Hayleys and Expolanka Holdings. Mixed interest was observed in Dipped Products, Royal Ceramics and Alumex, whilst retail interest was noted in Browns Investments and Industrial Asphalts.

During the day  87.1 million share volume changed hands in 23971 transactions.