Profit-takings in LOLC Group affect CSE momentum

By Hiran H.Senewiratne

CSE trading activities were positive yesterday despite other global stock markets showing a downward trend with the possible spread of the Covid 19 new variant. The market was slightly volatile throughout the day. At the beginning, the stock market was positive but later it did not maintain the same momentum because profit- takings were noted in the LOLC Group of companies, especially LOLC Holdings, Browns Investments and Brown and Company, stock market analysts said.

But price appreciation was witnessed in Expolanka Holdings and Expack Corrugated Company which put the market in positive territory. Expolanka Holdings’ share price appreciated by Rs 16.25 or 6.5 per cent. Its share price shot up to Rs 263.50 from Rs 247.25. Expack Corrugated Company, which listed recently, saw its share price appreciate by 30 percent or Rs 5.30. Its share price started at Rs 17.60 at the end of the day it moved up to Rs 22.90. During the day manufacturing sector companies noted gains, while plantation companies showed some profit- takings.

Amid those developments both indices moved upwards. The All Share Price Index went up by 4.41 points and S and P SL20 rose by 13.81 points. Turnover stood at Rs 8.9 billion with a single crossing. The crossing was reported in Access Engineering, which crossed two million shares to the tune of Rs 58 million; its shares traded at Rs 29.

In the retail market, seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 1.8 billion (7.2 million shares traded), Browns Investments Rs 1.2 billion (90.7 million shares traded), Expack Corrugated Rs 933 million (43.5 million shares traded), Lanka Realty Investments Rs 595 million (20.3 million shares traded), Royal Ceramic Rs 406 million (6.3 million shares traded), Vallible One Rs 272 million (four million shares traded)and Dipped Products Rs 248 million (4.7 million shares traded). During the day 343 million share volumes changed hands in 64000 transactions.

Controlling foreign shareholders of Lanka Realty Investments PLC (LRI) yesterday partly shed their stakes to boost liquidity as retailers stepped up buying.

ASCO saw 39 million of its shares change hands via 3,284 trades for Rs. 994.5 million. However, the share closed at Rs. 25.30, down by 18% or Rs. 5.60, though improved liquidity is likely to boost its attractiveness.

Foreign shareholder directors of Northern Trust Company, S/A Ian McVeigh, sold 15.7 million shares at Rs. 25 each and Terry C. Smith shed an equal number. Post-sale, Northern Trust holds 23.83 per cent down from 31.3 per cent and Smith 3.12 per cent, down from 10.6 per cent. Smith is also a connected party to ‘Eighth Wonder’, the holding of which remains unchanged at 11.3 per cent.

Yesterday, the US dollar was quoted at Rs 202.39, which was the Central Bank controlled price aimed at preventing the escalation of prices of essential imported items. However, the actual market price is about to touch Rs 250 market, market sources said.