ECONOMYNEXT – Sri Lanka stocks reversed its losing trend in the last two sessions to end 0.05 percent up on Wednesday (28), a day after Sri Lanka repaid one-billion-dollar International Sovereign Bond amid concerns of default risks. But foreign investors continued to exit the market.
The gain was led by Expolanka Holdings, Browns Investments and Ambeon Capital, brokers said.
The Colombo benchmark All Share Price Index gained 4.00 points to close at 8,096.98. It had fallen 0.6 percent on the previous two days in the week.
Sri Lanka honoured the 1-billion-dollar International Sovereign bond repayment on July 27 and State Minister for Money and Capital Markets Nivard Cabraal said the country was expected to recoup around 20 percent of the repayment as 310 million dollars was held by resident investors.
“That 310 million will be an inflow,” Cabraal said. “We expect to take about 200 million dollars through swaps to build reserves.”
Related – Sri Lanka to recoup US$200mn from bond settlement back to forex reserves: Minister Cabraal
The S&P SL20 index of more liquid stocks gained 0.09 per cent or 2.77 points to close at 3,050.99.
Foreign investors net sold 84.2 million rupees worth stocks on Wednesday. Sri Lanka bourse has seen 33.6 billion foreign outflows so far this year.
ASPI opened the day above 8,000 but remained volatile and plunged during mid-day trade to 8,075.63 but picked up marginally before close.
Turnover was 1.8 billion rupees with 104 stocks gaining and 74 falling.
Expolanka Holdings went up 80 cents to close at 66.80 rupees a share contributing most to ASPI’s gain. Expolanka has become the fourth largest market capitalization holder with 130.6 billion rupee market capitalization or 3.66 percent of the total market. Brokers said investors see the stock that could gain more in the future as Expolanka is looking for more logistic investments in different geographic regains in the world.
Browns Investment, a subsidiary of LOLC, closed 10 cents up at 6.40 rupees a share while Brown and Company fell 2.25 rupees to close at 182.00 rupees a share. Brokers attributed the gains to expected rise in revenue and profits once Colombo Port City starts commercial operation. Browns Investments has entered into a deal with China Harbour Engineering Company (CHEC) for a 1 billion dollar mixed development project at the Colombo International Finance Centre (CIFC) envisaged in the Colombo Port City.
LOLC Holdings closed 22.00 rupees up at 462.75 rupees a share, LOLC Finance closed 10 cents up at 6.90 rupees a share while LOLC Development Finance closed 29.50 rupees down at 506.75 rupees a share.
John Keells Holdings closed 50 cents down at 136.75 rupees a share and Vallibel One closed 80 cents down at 57.00 rupees a share.
Hayleys Plc closed flat at 81.50 rupees with key subsidiaries Haycarb Plc closed 20 cents down at 97.50 rupees and Dipped Products gain 80 cents to close at 58.00 rupees.
Hemas Holdings closed flat at 79.00 rupees.
Ceylon Tobacco Company PLC closed flat at 960.00 rupees, Piramal Glass Ceylon closed 70 cents up at 17.30 rupees and Ceylon Cold Stores closed 75 cents up at 656.00 rupees.
Sri Lanka Telecom closed flat at 33.50 rupees and Richard Pieris and Company closed flat at 17.00 rupees.
Dialog Axiata closed flat at 11.70 rupees, Nestle Lanka fell 4.75 rupees to 1,317.75.
Housing Development Finance closed 1.20 rupees down at 35.50 rupees and Central Finance Company closed 10 cents up at 89.20 rupees.
Commercial Bank of Ceylon closed 40 cents up at 84.40 rupees.
Hatton National Bank closed 25 cents down at 129.50 rupees a share and Sampath Bank closed 20 cents up at 51.60 rupees a share.
DFCC Bank closed 10 cents up at 59.10 rupees and Nations Trust Bank closed 30 cents down at 56.00 rupees.
Seylan Bank closed 1.20 rupees up at 47.90 rupees and Pan Asia Banking Corporation closed 10 cents up at 15.80 rupees.
Ambeon Capital gained 1.30 rupees to close at 7.00 rupees a share.
Distilleries Company closed 30 cents down at 19.20 rupees a share and Melstacorp Plc closed 30 cents down at 51.00 rupees.
In the hotel sector, Eden Hotel Lanka closed 50 cents up at 16.30 rupees while John Keells Hotels closed 30 cents up at 11.10 rupees a share and Aitken Spence Hotel Holdings closed 50 cents up at 31.50 rupees.
Access Engineering closed 10 cents down at 22.70 rupees. Aitken Spence Plc gained 1.20 rupees up to close at 64.80 rupees.
Windforce Closed flat at 19.00 rupees, Chrissworld limited closed 10 cents down at 12.80 rupees and Prime Land Residencies closed flat at 9.60 rupees.
Royal Ceramic Lanka closed 10 cents down at 38.50 rupees, Lanka Tiles closed 20 cents up at 56.00 rupees and Lanka Walltiles closed 30 cents up at 68.80 rupees.
The Group Index of Capital Goods which was the most active fell 0.32 percent. (Colombo/July 28/2021)