Share price appreciations in LOLC and Hayleys Group counters

By Hiran H. Senewiratne

CSE trading activities were positive yesterday mainly due to the announcement of an Indian relief package, on an urgent basis to Sri Lanka, following Finance Minister Basil Rajapaksa’s New Delhi visit that focused on measures to tide over the current economic crisis that Sri Lanka is facing, market analysts said.

Indian media reported that India is expected to extend a food & health security package to Sri Lanka along with an energy security package and currency swap. It also plans to push Indian investments. It was agreed during Rajapaksa’s visit that the procedures to realize these objectives would be finalized early, within a mutually agreed time, stock market analysts said.

Next January Sri Lanka has to pay US $ 500 million worth of international sovereign bonds. If the government defaults, its economic repercussions would be very serious and Sri Lanka could be branded as a high- risk economy. Therefore, by January Sri Lanka would be left with US $ 1.5 billion, stock market analysts said.

Amid those developments notable buying interest was witnessed in most companies, including blue chip companies. Price appreciation was reported mostly in LOLC Group counters and Hayleys Group counters. LOLC Holdings, contributed 202 points to the All- Share Price Index and its share price moved up by Rs 190 or 19 points. Its share prices shot up to Rs 1187 from Rs 997. Brown and Company share prices appreciated by 15 per cent or Rs 48.50. Its share price appreciated to Rs 369.25 from Rs 320.75. Hayleys share price rose by Rs 4.50 or four per cent. Its share price shot up to Rs 115.2 from Rs 110, at the end of the day’s trading. Further, poultry sector counters also moved up yesterday. Main appreciation was noted in Bahirah Farm, which increased by 13 per cent or Rs 36.50. Its shares started trading at Rs 273.25 at the end of the day they moved to Rs. 315.

Consequently, both indices moved upwards. The All-Share Price Index went up by 286 points and S and P SL20 rose by 125 points or three per cent. Turnover stood at Rs 8.1 billion with five crossings. Those crossings were reported in Brown and Company, where 400,000 shares crossed for Rs. 130 million and its shares traded at Rs 328, JKH 250,000 shares crossed for Rs 36 million, its shares traded at Rs 144, Royal Ceramic 300,000 shares crossed for Rs 22.2 million, its shares fetched Rs 74, Hemas Holdings, 300,000 shares crossed for Rs 21 million, its shares traded at Rs 70 and Sampath Bank 387,000 shares crossed for Rs 20.7 million and its shares fetched Rs 53.50.

In the retail market top seven companies that mainly contributed to the turnover were, Expolanka Rs 1.6 billion (4.5 million shares traded), LOLC Holdings Rs 617 million (543,000 shares traded), Browns Investments Rs 565 million (39 million shares traded), Brown and Company Rs 370 million (one million shares traded), Hayleys PLC Rs 290 million (2.5 million shares traded), Sampath Bank Rs 281 million (5.2 million shares traded) and SMB Leasing Rs 246 million (135 million shares traded). During the day 9.9 million shares volumes changed hands in 54000 transactions.

Yesterday, the US dollar was quoted at Rs 201.83, which is the Central Bank controlled price. It is close to Rs 250 in normal circumstances. However, the rupee will likely stabilize if the US $ one billion dollar currency swap comes into play, market analysts said.