Expolanka leads CSE turnover revival as investors get bullish on record earnings

• Logistics-heavy blue-chip races to 4th most valuable stock after record high price level
• Most profitable corporate to date in FY22 Expo’s market value now at Rs. 143.5 b, up from Rs. 98 b as of end June
• CSE’s ASPI at 6-month high, YTD gain crosses 20% mark; turnover tops Rs. 4 b 

The most profitable corporate to date in FY22, Expolanka Holdings PLC, yesterday led the revival of turnover at the Colombo stock market and rose to be the fourth most valuable listed firm, as investors turned bullish over its record quarterly earnings. 

Expolanka traded between a high of Rs. 74.40 and a low of Rs. 67.20 before closing at Rs. 73.40. The rise in share price saw Expolanka's market capitalisation gaining to Rs. 143.49 billion, just below LOLC, JKH and CTC. Expolanka contributed 28 points to ASPI. 

Expolanka saw 19 million of its shares change hands via 5,303 trades, generating Rs. 1.35 billion in turnover, accounting for 33%.  

In the past two weeks, Expo has been establishing new 52-week highs, since the previous figure of Rs. 64.60. In June, the company was ranked as seventh most valuable, with a market capitalisation of Rs. 97.94 billion and a price of Rs. 50.10.

While stellar results failed to boost Expo’s share price on Friday, yesterday's rally came despite some finding cause for concern surrounding the Rs. 73 billion in trade and other receivables as of 30 June 2021 versus Rs. 49 billion as of 31 March 2021.

Led by vibrant growth in its logistics sector, Expolanka Holdings on Friday announced another record-breaking performance during the quarter ended 30 June (Q121).

Expolanka said Group revenue recorded a remarkable 165% year-on-year (YoY) expansion to reach Rs. 95.7 billion resulting in gross profit of Rs. 14.4 billion, up 130% YoY. Together with a strong focus on operational efficiency, Group Profit After Tax (PAT) surged by an outstanding 259% YoY, up to Rs. 6.3 billion.

Play on Expolanka boosted overall investor sentiment as turnover rose to Rs. 4.09 billion involving 311.2 million shares. The All Share Price Index gained by over 27 points, or 0.34%, and S&P SL20 improved by 10 points, or 0.33%. The ASPI's year-to-date (YTD) gain crossed the 20% mark while S&PSL20 was up 16.4%.

First Capital said the bourse reclaimed its position in the green territory while recording an index high for six months. 

“ASPI remained optimistic till the first seven minutes of trading, but subsequently displayed a gradual downturn till the end of the first half of session at 8,114, followed by a bumpy uptrend over the remainder of session, reaching an intraday high of 8,169, before closing at 8,148, gaining 28 points,” First Capital added. 

It said turnover was a one-week high supported by high retail participation led by the Transportation sector, followed by the Capital Goods sector, collectively accounting for a joint contribution of 53%. 

Asia Securities said turnover picked up strongly from Friday’s levels boosted by HNI and retail activity in EXPO as the stock generated 33% of turnover and witnessed sharp gains during the session. 

“The indices moved in a narrow range during early hours, however trended upwards in the latter part of the session, supported by price gains in EXPO, BIL and LOLC,” Asia said. 

Transportation, Capital Goods, Food, Beverage and Tobacco and Materials sectors led activity, collectively accounting for 77.6% of turnover. 

Asia said foreigners recorded a net outflow of Rs. 253.6 million while their participation increased to 5.5% of turnover (previous day 4.8%). Estimated net foreign buying topped in BIL at Rs. 14.9 million and net foreign selling topped in TJL at Rs. 168.2 million. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Browns Investments and LOLC Holdings.

It said high net worth and institutional investor participation was noted in Teejay Lanka and Commercial Bank. Mixed interest was observed in Expolanka Holdings, Royal Ceramics and LOLC Holdings, while retail interest was noted in SMB Leasing non-voting, Browns Investments and Millennium Housing Developers. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), while the sector index gained 9.49%. The share price of Expolanka Holdings increased by Rs. 6.40 (9.55%) to close at Rs. 73.40.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics), while the sector index edged down by 0.05%. The share price of Royal Ceramics moved up by Rs. 1.40 (3.62%) to close at Rs. 40.10.

Browns Investments, LOLC Holdings and Teejay Lanka were also included amongst the top turnover contributors. The share price of Browns Investments gained Rs. 0.40 (6.35%) to close at Rs. 6.70. The share price of LOLC Holdings recorded a gain of Rs. 8.50 (1.83%) to close at Rs. 473.75. The share price of Teejay Lanka appreciated by Rs. 0.10 (0.24%) closing at Rs. 42.10 while foreign holdings decreased by 3,996,416 shares.