Sri Lanka’s Expolanka boosts YTD net foreign inflow to Rs. 23 billion.
Daily FT: Foreign buying into Expolanka Holdings Plc had recently pushed net inflows to Rs. 5.4 billion so far in December and to Rs. 23 billion year to date.
The Colombo stock market saw Rs. 1.6 billion net inflow thanks to Rs. 1.5 billion worth net buying into Expolanka Holdings.
This boosted turnover to Rs. 3.5 billion whilst indices managed to rebound.
Asia Securities said the ASPI moved in the narrow range of 8,840-8,880 throughout the session on Wednesday (14) amid strong foreign inflows in EXPO. LOFC (+5.0%), HBS (+4.2%), LIOC (+5.3%), BIL (+1.2%), CFVF (+2.7%), and FCT (+1.1%) ended in green while SUN (-1.6%), PACK (-2.9%), and TAP (-3.5%) closed lower. Apart from Expo, turnover was supported by LIOC (Rs. 698 million), and HBS (Rs. 180 million). Overall, 82 stocks ended with price gains while 87 closed lower.
First Capital said the bourse reverted to green as both ASPI and S&P SL20 indices recorded a thin gain on optimistic investor sentiment with recent developments on the economic front. Index moved on a gradual uptrend throughout the session with buying interest spanned on LIOC and Diversified Financials counters before closing for the day at 8,871 gaining 38 points.
Meanwhile, market turnover displayed robust improvement registering 162% above the previous day’s turnover and recorded at Rs. 3.5 billion (+74% cf. monthly average turnover of Rs. 2 billion). Improvement in turnover was mainly led by EXPO (Transportation sector) which accounted for a contribution of 47% following the buyback of 7.0 million shares by the parent company through an off-board transaction at Rs. 210 per share.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as Lanka IOC, DFCC Bank and Hatton National Bank.
Crossings were witnessed in Expolanka Holdings accounting for 41.6% of the turnover. Mixed interest was observed in Lanka IOC, First Capital Treasuries and First Capital Holdings whilst retail interest was noted in LOLC Finance, Browns Investments and hSenid Business Solutions.
The transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 0.36%. The share price of Expolanka Holdings increased by 75 cents to close at Rs. 207.50.
The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 4.89%. The share price of Lanka IOC gained Rs. 12 (5.26%) to close at Rs. 240.25.
hSenid Business Solutions, LOLC Finance and Browns Investments were also included amongst the top turnover contributors. The share price of hSenid Business Solutions moved up by 70 cents (4.19%) to close at Rs. 17.40. The share price of LOLC Finance recorded a gain of 40 cents to close at Rs. 8.40. The share price of Browns Investments appreciated by 10 cents to close at Rs. 8.20.
The performance of Expolanka is indicative of the strength and growth of Sri Lanka’s private sector. The growth and profits recorded by the country’s private sector even amidst challenging economic conditions is testament to the business conducive environment in Sri Lanka. After facing the global pandemic and its ensuing economic challenges, Sri Lanka is once again on the path to recovery while recording expansions in key economic sectors. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have also helped boost Sri Lanka’s image as an emerging business destination in the South Asian region. Given the growth and business potential of the country, foreign businesses/investors could confidently explore the growing opportunities in Sri Lanka while also looking at forming partnerships or joint ventures with local businesses with the aim of further expansion.
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