SG Holdings buys into Expolanka Holdings stocks, boosting net foreign inflow

By Hiran H.Senewiratne

SG Holdings bought into Expolanka Holdings’ stocks to boost the net foreign inflow at the CSE, market analysts said.CSE ‘s most profitably listed entity, Expolanka Holdings, saw 11.1 million of its shares change hands via 923 trades for Rs. 2.5 billion. Among the transactions, there were 53 crossings involving 10 million shares at Rs. 225 each. The share price of Expolanka increased by Rs. 4.25 (1.96 per cent) to close at Rs. 220.75.

Expolanka contributed 37 per cent to the day’s turnover at the CSE which saw a rebound in investor sentiment.With SG’s purchases net foreign inflow amounted to Rs. 2.3 billion yesterday, boosting the year to date figure to Rs. 4 billion and Rs. 3.5 billion for September so far. Between early August and last week SG Holdings had collected 10 million shares and with yesterday’s quantity it has acquired a 1.36 per cent stake in addition to the existing shareholding of 75.6 per cent.

Amid those developments CSE was extremely bullish yesterday and penny stocks began to be active and reported considerable gains. The reason being that stock market investors and others are attracted to the equity market because the inflation rate is more than 60 per cent. Therefore, people have begun to invest in the equity market, mainly the stock market and government securities in Treasury Bonds/Bills and other commercial papers’ annual rates are also at 30 per cent, stock market analysts said.

‘The market is continuing on the previous day’s positive sentiment mainly pushed by heavyweight Expolanka. We are still seeing crossings taking place in the counter while investors are showing interest again in plantation sector shares, an analyst said.

On Wednesday, the market saw a net foreign inflow of Rs 2.29 billion, its highest since July 2019, mainly on buying in Expolanka shares.

Both indices moved upwards. The All- Share Price Index went up by 152 points and S and P SL20 rose by 64.7 points. Turnover stood at Rs 4.9 billion with four crossings. The crossings were reported in Expolanka Holdings, which crossed 3.2 million shares to the tune of Rs 732 million, its shares traded at Rs 225, Melstacorp 2.5 million shares crossed to the tune of Rs 140 million, its shares trading at Rs 57, JKH 650,000 shares crossed to the tune of Rs 81.7 million, its shares fetched Rs 126.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 419 million (1.8 million shares traded), Richard Pieris Rs 296 million (9.5 million shares traded), Lanka IOC Rs 292 million (1.2 million shares traded), Agsta PLC Rs 226 million (12.7 million shares traded), LOLC Finance Rs 208 million (31.3 million shares traded), Melstacorp Rs 160 million (2.8 million shares traded) and JKH Rs 142 million (1.1 million shares traded).

It is said mixed interest was observed in Lanka IOC, CIC Holdings and Lankem Developments, while retail interest was noted in SMB Leasing voting and non-voting, Kotagala Plantations and Tess Agro.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Lankem Developments) while the sector index increased by 0.84 per cent. The share price of Lankem Developments recorded a gain of Rs. 3.30 (11.34 per cent) to close at Rs. 32.40. Lanka IOC, CIC Holdings non-voting and Richard Pieris & Company were also included among the top turnover contributors.Yesterday the Central Bank’s dollar buying rate was Rs 358.41 and the selling rate Rs 369.38.