• Browns Group completes acquisition of 90% stakes in Udapusselawa and Hapugastenna plantation companies for Rs. 1.9 b
• YTD net foreign outflow tops Rs. 51 b mark

The Colombo stock market began the final week of trading for 2021 on a negative note with both indices down, though turnover improved sharply on account of a strategic deal.

The All Share Price Index dipped by 0.5% or 62 points and the S&P SL20 declined by 0.8% or 36 points. Turnover was Rs. 7.3 billion involving 635 million shares.

Browns Investments PLC, wholly owned subsidiary Browns Power Holdings Ltd., acquired 17.45 million shares of Udapussellawa Plantations PLC at Rs. 42 per share, and 41.68 million shares of Hapugastenne Plantations PLC at Rs. 28.30 per share as a follow up to the agreement signed with Finlays Sri Lanka last week.

Market also saw high net foreign selling, increasing the year-to-date (YTD) net outflow to over Rs. 51 billion.

Asia Securities said the indices ended lower, snapping their three-day gaining streak due to price declines in SFCL, EXPO, and LOLC. Turnover was boosted by block trade transactions in HAPU and UDPL, while active retail and HNI participation was witnessed in LIOC, EXPO, and BIL.

Following a strong start to the session, the ASPI hovered above the 12,200 level on sharp price increases in SFCL. The stock exhibited massive volatility during the session, however, recorded a very low turnover (Rs. 86 million). 

After surging over 25% in mid-afternoon trade, the stock plunged as much as 23% in the second half of the session, dragging down the ASPI from 12,193 to 12,071 (-122 points). Following the pullback, market sentiment remained modest as investors maintained a risk-averse approach through the rest of the session. Overall, 118 stocks ended higher while 99 recorded price losses, Asia added.

It also said foreigners recorded a net outflow of Rs. 458.6 million while their participation increased to 4.3% of turnover (previous day 1.8%). Net foreign buying topped in RHL at Rs. 29.5 million and net selling topped in HAPU at Rs. 276 million.

First Capital said the bourse slid back to the red zone after an enormous gain during the last few days despite recording a one-and-half-week-high turnover.

“The index continued to pursue a bull run for the first half of the session, gaining more than 100 points while reaching an intraday high of 12,219. Subsequently, the index witnessed sizable volatility after mid-day as investors chose to book profits in selected counters, leading the market to close at 12,008,” First Capital added. 

It said turnover was led by a joint contribution of 58% from the Food, Beverage and Tobacco sector and the Capital Goods sector.

NDB Securities said high net worth and institutional investor participation was noted in Udapussellawa Plantations and Hapugastenne Plantations. Mixed interest was observed in Softlogic Life Insurance, Richard Pieris & Company, and Renuka Holdings voting, whilst retail interest was noted in Renuka Agri Foods, SMB Leasing non-voting and SMB Leasing voting.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Hapugastenne Plantations, Udapussellawa Plantations and Browns Investments), whilst the sector index edged down by 0.02%. 

The share price of Hapugastenne Plantations increased by Rs. 6.70 (24.72%) to close at Rs. 33.80. The share price of Udapussellawa Plantations gained Rs. 10.50 (25.00%) to close at Rs. 52.50. The share price of Browns Investments closed flat at Rs. 14.30.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index increased by 0.39%. Lanka IOC and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC moved up by Rs. 1.40 (1.91%) to close at Rs. 74.60. The share price of Expolanka Holdings recorded a loss of Rs. 7.75 (2.01%) to close at Rs. 377.50.

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