SG Holdings buying into Expolanka propels net foreign inflow at CSE

• Foreign parent collects 10 m Expo shares for Rs. 2.25 b, boosting YTD net inflow to Rs. 4 b and Rs. 3.5 b in September so far
• SG Holdings estimated to have bought 1.36% stake since early August in addition to 75.6% existing shareholding

SG Holdings yesterday stepped up buying into its subsidiary and Sri Lanka’s most profitable listed entity Expolanka Holdings PLC boosting net foreign inflow at the Colombo Stock Exchange. 

Expolanka saw 11.1 million of its shares change hands via 923 trades for Rs. 2.5 billion. Of 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%) to close at Rs. 220.75.

Expolanka contributed 37% of the day’s turnover at CSE which saw 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 the September month so far. 

Between early August and last week SG Holdings had collected 10 million shares and with yesterday’s quantity it has acquired 1.36% stake in addition to the existing shareholding of 75.6%. 

Overall sentiment in the Colombo stock market was healthy yesterday. 

Asia Securities said following a subdued session, the indices returned to positive territory with turnover scaling to a four-week high at Rs. 6.1 billion (previous session Rs. 4.1 billion). 

Excluding EXPO, market turnover stood at Rs. 3.6 billion, hovering around the 10-day moving average of Rs. 3.4 billion. LIOC generated the highest turnover for the session after EXPO at Rs. 586 million, followed by CIC.X (Rs. 244 million), LDEV (Rs. 228 million), and RICH (Rs. 198 million). 

Asia said the ASPI commenced the session on a high note earlier, trending towards the 9,450 mark and oscillated in a range for the remainder of the session. RICH came in as the biggest index mover (+31 points), followed by CINS (+20 points), RCL (+10 points), and EXPO (+8 points). 

Among the front-line stocks, EXPO (+2.0%), LIOC (+2.4%), CIC.X (+6.6%), CCS (+8.0%), and LDEV (+11.3%) closed with gains while LOFC (-4.2%), BIL (-1.3%), and LOLC (-1.2%) ended in red. The breadth of the market ended positive with 129 price gainers and 84 decliners. 

First Capital said the bourse bounced back to green, reinstating the winning momentum as retail and HNW participants unleashed their bullish bets on the back of improved investor confidence owing to the anticipated macroeconomic stability. 

ASPI embarked on a high note and traded positively throughout the session advancing the index up to 9,447 gaining 117 intra-day points. Turnover was three-and-a-half weeks high. Deals on Expolanka saw the Transportation sector contributing 41% of the turnover whilst Food, Beverage and Tobacco sector accounted for 16%.

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

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Lankem Developments) whilst the sector index increased by 0.84%. The share price of Lankem Developments recorded a gain of Rs. 3.30 (11.34%) to close at Rs. 32.40. Lanka IOC, CIC Holdings nonvoting and Richard Pieris & Company were also included among the top turnover contributors. 

The share price of Lanka IOC gained Rs. 5.25 (2.35%) to close at Rs. 228.50. The share price of CIC Holdings nonvoting moved up by Rs. 3.90 (6.57%) to close at Rs. 63.30. The share price of Richard Pieris & Company appreciated by Rs. 3.80 (15.83%) to close at Rs. 27.80.