Foreign fund Matthews sells more of LOLC; local play continues

Foreign fund Matthews yesterday continued to sell more shares of LOLC Holdings PLC as locals picked up quantities sensing improved prospects though the share price declined yesterday. 

LOLC saw net foreign selling of 6.17 million shares for Rs. 732.6 million reducing its non-national shareholding to 0.64% from 1.84% on Friday. Last week the market saw 10.3 million shares of net foreign selling for Rs. 1.23 billion. In early June, foreign holding amounted to 4.11%.

Market analysts said Matthews may have cleared most of its holdings though statistics reveal a couple of million shares still being held on to. 

Collectively it was the fifth largest investor at LOLC.  As at 31 December 2019, BBH - Matthews International Funds-Matthews Asia held 11.8 million shares or 2.48% and BBH - Matthews Emerging Asia Fund held 7 million shares or 1.46%.

Yesterday 7.9 million LOLC shares traded for Rs. 927 million accounting for 55% of the turnover. Of the traded shares 4 million were done via three crossings at Rs. 117 per share. The stock closed at Rs. 118.60, down by % or Rs. 1.30. Number of trades were 924 or 13% of the market’s total. 

Last week, 12.1 million shares of LOLC traded last week for Rs. 1.4 billion and the stock closed up Rs. 8.90 to Rs. 119.90 after touching an intra-week high of Rs. 120.60. Number of trades were 2,334 or 5% of the market’s total.  Analysts said high net worth investors were seen in active play of LOLC with heavy trading. 

Apart from deals on LOLC, the Colombo Bourse was bearish. 

Acuity Stockbrokers said the ASPI decreased by 0.08% or 4.00 points to close at 4,910.83 points, while the S&P SL20 Index decreased by 0.38% or 7.74 points to close at 2,047.22.

Turnover increased by 26.7% relative to Friday to amount to Rs. 1.68 billion while crossings for the day amounted to 35.9% of the day’s total turnover. 

Foreign Investors meanwhile, recorded a net outflow of Rs. 1.11 billion over the day compared to a net outflow of Rs. 508 million on Friday.

First Capital said Bourse ended in the negative territory for the third consecutive session while experiencing high foreign participation for the seventh straight trading session dominated by the continuous selling interest. 

“ASPI was dragged down predominantly due to the dip in prices of CARG & JKH. The index recorded a surge within the first few minutes of trading and reached its intraday high of 4,923, thereafter witnessed a downtrend and hit its intraday low of 4,894 before closing at 4,911 losing 4 points,” First Capital said. LOLC amounted to 51% of the turnover while the parcel trades made in LOLC and SAMP contributed substantially.

NDB Securities said the ASPI edged down as a result of price losses in counters such as Cargills, John Keells Holdings and Commercial Bank.

It said high net worth and institutional investor participation was noted in LOLC Holdings and Lee Hedges. Mixed interest was observed in Sampath Bank, whilst retail interest was noted in Hatton National Bank non-voting. 

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings) whilst the sector index lost 0.74%. The share price of LOLC Holdings decreased by Rs. 1.30 (1.08%) to close at Rs. 118.60.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank, Hatton National Bank non-voting and Hatton National Bank) whilst the sector index decreased by 0.31%. The share price of Sampath Bank gained Rs. 1.30 (1.19%) to close at Rs. 110.60. The share price of Hatton National Bank nonvoting moved down by Rs. 0.20 (0.27%) to close at Rs. 75.10. The share price of Hatton National Bank edged down of Rs. 0.10 (0.10%) to close at Rs. 99.80.

Lee Hedges was also included amongst the top turnover contributors. The share price of Lee Hedges declined by Rs. 10.00 (16.67%) to close at Rs. 50.00.