By Hiran H. Senewiratne
The Colombo Stock Exchange (CSE) continued to edge down in mid-morning trade yesterday, reverting from previous day’s gain. The reason being for the stock market to come down mainly due to profit takings on index heavy entities Expolanka and Lanka IOC, stock market analysts said.
With the macroeconomic conditions being positive stock market analysts are confused why profit takings have occurred in Lanka IOC and Expolanka Holdings. But despite those issues in the market foreing investor sentiment has been improved and net foreing inflows have reached Rs 69.7 million yesterday, stock market analysts said.
Amid those developments both indices moved downwards. All Share Price Index down by 136 points and S and P SL20 down by 85.2 points. Turnover stood at Rs 2.8 billion with a single crossing. The crossing reported in JKH, which crossed 300,000 shares to the tune of Rs 39 million and its share price traded at Rs 130.
In the retail market top seven companies that mainly contributed to the turnover were Lanka IOC Rs 513 million (2.2 million shares traded), Ambeon Capital Rs 492 million (39.4 million shares traded), CIC Holdings Rs 209 million (2.3 million shares traded), Expolanka Holdings Rs 205 million (1.2 million shares traded), CIC (Non Voting) Rs 164 million (2.2 million shares traded), Dankotuwa Porcelain Rs 126 million (2.2 million shares traded) Acle Cables Rs 118 million (1.2 million shares traded). During the day 110 million share volume changed hands in 29000 transactions.It is said that high net worth and institutional investor participation was noted in People’s Leasing & Finance, JKH and Chevron Lubricants. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Dankotuwa Porcelain whilst retail interest was noted in Browns Investments, SMB Leasing (voting and nonvoting) and First Capital Holdings.Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index gained 2.26 percent. The share price of Lanka IOC increased by Rs. 4.25 (1.80percent) to close at Rs. 240.50.The Capital Goods sector was the second highest contributor to the market turnover (due to JKH) whilst the sector index increased by 0.96 percent. The share price of JKH recorded a loss of 50 cents to close at Rs. 130.
Further, Almans Holdings increased their stake in Dankotuwa Porcelain by ten percent, while Windfore Plc to invest Rs 200 million for an electric vehicle plant as part of its business diversification plan. Currently, its co-business is renewable energy. Yesterday the Central Bank announced the US dollar rate. It is buying rate Rs 359.13 and selling rate Rs 369.86.
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