Selling in Expolanka Holdings drags down market; S and P SL20 drops over 5 per cent

By Hiran H.Senewiratne

The CSE fell over 2 per cent in mid-day trade yesterday dragged down by market heavy weight, Expolanka Holdings, on falling freight rates globally and the revision of fuel prices in the domestic market. Accordingly, most stocks declined by more than five percent at the end of the day’s trading, stock market analysts said.

Market participants said indices were dragged down on selling in Expolanka, as global freight prices fell, while foreign buying in shares slowed down. However, business sentiments were not impaired because macroeconomic fundamentals of the country are getting better under President Ranil Wickremesinghe, market analysts claimed.

The market began on a negative note and in the middle of the session, the circuit- breaker was triggered and trading halted for 30 minutes. The S and P SL20 index dropped over five per cent. When trading resumed around 10: 41 am, the market showed some recovery but was unable to sustain its momentum until the end of the day’s trading, market analysts added.

Amid those developments the main All- Share Price Index plunged 412 points and the S and P SL20 declined by 153 points. Turnover stood at Rs 4.54 billion with three crossings. Those crossings were reported in Dankotuwa Porcelain, which crossed 8.1 million shares to the tune of Rs 203 million, its shares traded at Rs 25, LOLC Finance 23.8 million shares crossed for Rs 200 million, its shares traded at Rs 8.40 and CIC Holdings 700,000 shares crossed for Rs.56.7 million, its shares fetched Rs 81.

In the retail market top seven companies that mainly contributed to the turnover were, Lanka IOC Rs 1.2 billion (5.7 million shares traded), Expolanka Holdings Rs 448 million (2.5 million shares traded), ACL Cables Rs 273 million (2.7 million shares traded), JKH Rs 139 million (one million shares traded), CIC Holdings Rs 93.8 million (1.2 million shares traded), Browns Investments Rs 92.3 million (13.2 million shares traded) and Lankem Development Rs 81 million (2.5 million shares traded). During the day 188 million share volumes changed hands in 42000 share transactions.

Yesterday, net foreign purchasing stood at was Rs 62 million and net foreign selling was reportedly Rs 41 million. Therefore, net foreign inflows amounted to Rs 21.5 million in the stock market. Further, according to external media reports, foreigners are now interested in buying into Sri Lankan rupee bonds, in conjunction with the market’s recovery, stock analysts said.

During the day, US and European stock markets appreciated despite there being an economic recession and inflationary worries.

Yesterday, the Central Bank- announced US dollar buying rate was Rs 359.16 and its selling rate Rs. 369.91.