Retailers step up their play on Lanka IOC shares

Major transaction announced between James Finlay and Browns Investments

By Hiran H. Senewiratne

Trading activities on the Colombo Stock Exchange (CSE) was positive throughout yesterday with investor sentiment bouncing back pushing both indices by over 1 percent.

Retailers stepped up their play on Lanka IOC shares with over Rs. 1.4 billion traded, pumping its price by over 32 percent, as a result of the fuel hike which made it attractive, stock market analysts said.

Meanwhile, a major transaction was announced between James Finlay’s and Browns  Investments. Browns Investments entered into a transactions agreement with James Finlays’ company to purchase 90 percent each shares in two companies; namely Happugasthanna Plantations and Uddupussalawa Plantations. James Finlays being the owner of both entities sold 41.7 million shares in Hapugastenne Plantation at Rs 28.30 per share and 17.4 million shares of Udupussalaawa Plantations at a share price of Rs 42. The total considerations would be Rs 1.9 billion, stock market analysts said.

With these two transactions  LOLC group will strengthen its positions in the plantation sectors because Browns Investments is one of the subsidiaries of LOLC group, market analysts said. Following two previous sessions of losses, the indices bounced back strongly with selected front-line counters across sectors gaining further ground as investors re-entered into these stocks capitalizing on recent price declines due to profit-taking.

Amid those developments both indices moved upwards. All Share Price Index up by 136 points and S and P SL20 up by 32 points. Turnover stood at 6.6 billion with three crossings. Those crossings were reported in HNB (Voting) 500,000 shares crossed for Rs 67.5 million and its share price traded at Rs 135, HNB (Non Voting) 182,000 shares crossed for Rs 22.3 million and its share price traded at Rs 123 and Richard Peiris one million shares crossed for Rs 20 million and its share price traded at Rs 20.

In the retail market top seven companies that mainly contributed to the turnover were Lanka IOC Rs 1.4 billion (19.6 million shares traded), Browns Investments Rs 655 million  (45.2 million shares traded), Expolanka Hotel Rs 609 million (1.5 million shares traded), Browns Investments Rs 361 million (995,000 shares traded), Kelani Tyres Rs 240 million (2.4 million shares traded), Softlogic Capital Rs 240 million (31.3 million shares traded) and Sunshine Holdings Rs 207.9 million (4.4 million shares traded).