Expolanka Holdings ends debut in company of top 20 most valuable

Expolanka Holdings Ltd. yesterday had a steady debut price wise but finished the day amongst the elite company of top 20 most valuable.

First off the block was a parcel of 379,500 shares transacted at Rs. 15 each whilst Expolanka finished the inaugural day with 31.6 million shares changed hands via 4,839 trades for Rs. 459 million. Deals on Expolanka contributed the highest turnover.           

Whilst the diversified sector index dipped marginally, Expolanka finished the debut up 40 cents to close at Rs. 14.40. With a market capitalisation of Rs. 28.15 billion (1.11% of the total), Expolanka finished with a rank of 19th most valuable above Hayleys the 20th placed with a value of Rs. 27.7 billion.

Expolanka traded midst a bearish market as All Share Index dipped by 0.6% and Milanka by 0.9%. The market’s turnover was only Rs. 2.48 billion, down from Rs. 3.3 billion on Friday.

Despite some expecting most of those who participated in the Rs. 6 priced sell down of shares prior to the IPO would dump for profit or cash in yesterday, the quantity traded confirm otherwise. The 31.6 million shares traded account for 1.6% of the issued number of shares, 10% of the sell down and perhaps 50% of the estimated retail category in the latter. Of the IPO amount yesterday’s quantity was around 18%.

Some brokers speculated that among the selling side of Expolanka yesterday could be some of those who participated in the sell down as well as a few who have the habit of exiting on the inaugural trading post-IPO. Other brokers said that there was demand/support at Rs. 14.50 and even at Rs. 15 level including foreign buying. The foreign holding of Expolanka as of yesterday was 20.45 million, which is equivalent to 12% of the offered amount via IPO or slightly above 1% of the total number of shares in issue.

NDB Stockbrokers commenting on the overall market said indices gradually decreased during the day amidst profit taking and low investor interest in blue chip stocks. Investor participation was mostly witnessed in penny stocks and Expolanka Holdings which commenced trading today. However, subtle price appreciations of these stocks could not hold the indices up.

It also said manufacturing sector also contributed significantly to the market turnover (due to Blue Diamonds Jewellery Worldwide and Royal Ceramics Lanka) with the sector index decreasing 0.38%. Renewed interest was witnessed in counters such as PC House and Royal Ceramics Lanka. Stocks which made quick gains recently, such as Browns & Company, Central Finance and Colombo Land dipped amidst profit taking.

Other analysts said institutional selling and buying was seen in Royal Ceramics which saw around 661,000 shares traded hitting a peak of Rs. 167 before closing at Rs. 162, up by Rs. 5.50.

Reuters reported that stock market fell to near three-month closing lows led by blue chips and financials due to a technical correction after heavy speculative trading in the past few days.

ASPI closed 0.62 percent or 45.06 points weaker at 7,186.86, its lowest since 21 March.

 “This is a correction after several penny stocks boosting the index in heavy speculative trading,” said a stock broker on condition of anonymity. “I think market is getting back to normal with fundamentals.”

Foreign investors were net buyers of 46.1 million rupees worth of shares on Monday, but they have sold a net 6.95 billion rupees worth shares in 2011 after a record 26.4 billion in 2010.

The bourse is still Asia’s best performer in 2011 with a 8.3 percent gain, after bringing in the region’s top return of 96 percent last year.

Meanwhile the rupee ended a tad firmer, closing at 109.45/48 a dollar from Friday’s 109.48/52 due to stocks-related inflows, currency dealers said. It hit a high of 109.30 a dollar on Thursday, its highest since 30 October, 2008, Reuters data showed.