S&P SL20 index declines amidst waning turnover; LOLC Group counters recover

By Hiran H.Senewiratne

The CSE managed to push its benchmark index to a positive trajectory though the more active S&PSL20 declined amid waning turnover yesterday. At the beginning profit- takings were noted and the market went down but later it turned positive and settled in positive territory, market analysts said.

The index- heavy Browns Investments share price declined to Rs 16.50 but later settled at Rs 17. The recovery of Browns Investments made other LOLC Group counters and other shares move to a positive momentum.

Softlogic Life Insurance witnessed a 40 per cent gain during the last five days. But yesterday it recorded a Rs 10.90 or 11 per cent price appreciation. Its shares traded at Rs 99.10 and at the end of the day they shot up to Rs 110.

Amid those developments both indices moved upwards. The All -Share Price Index went up by 215.5 points and S and P SL20 shot up by 74.6 points. Turnover stood at Rs 7.07 billion with three crossings. Those crossings were reported in LOLC Finance, which crossed 7.5 million shares to the tune of Rs 205 million, its shares traded at Rs 28, TJLanka 1.4 million shares crossed for Rs 72.3 million, its shares traded at Rs 50 and Browns Investments 1.2 million shares crossed to the tune of Rs 20.3 million; its shares traded Rs 16.90.

In the retail market top seven companies that mainly contributed to the turnover were Browns Investments Rs 636.3 million (37.8 million shares traded), Expolanka Holdings Rs 610 million (1.6 million shares traded), Softlogic Life Rs 368 million (2.4 million shares traded), LOLC Holdings Rs 321 million (237,000 shares traded), ACL Cables Rs 306 million (2.77 million shares traded), Softlogic Holdings Rs 283 million (4.2 million shares traded) and LOLC Finance Rs 236 million (8.2 million shares traded). During the day 253 million share volumes changed hands in 56280 share transactions.

Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and Access Engineering while retail interest was noted in SMB Leasing non-voting, Browns Investments and Softlogic Capital. The Diversified Financials sector was the top contributor to market turnover.

Yesterday the US dollar was quoted at Rs 201.50, which was the controlled price of the Central Bank. S&P Global Ratings earlier in the day lowered its long-term sovereign credit rating on Sri Lanka to ‘CCC’, from ‘CCC+’, saying the country’s external position continues to weaken due to elevated external obligations and an uneven access to financing.

S&P said Sri Lanka’s economic recovery would be challenged by the ongoing pandemic and external financial stresses. The rating agency forecast real gross domestic product growth of 2.2% this year, compared with its estimate of 3 per cent expansion in 2021.