Sampath sees over Rs. 2 b net foreign selling post-split move

Sampath Bank has seen over Rs. 2 billion worth of net selling since the announcement of its share sub division. 

Net foreign selling in Sampath topped the list of non-national activity for two weeks. During the week when a one into three share split was announced, net foreign selling was 9.46 million shares worth Rs. 1.9 billion and last week the amount was 3.5 million shares worth Rs. 622.6 million. 

Analysts were mixed over Sampath’s share split move with some saying it was unwarranted whilst others welcomed it. The public holding of Sampath Bank is a high 90.6% held by 25,481 shareholders. 

The main foreign seller is believed to be BBH-Matthews International Funds-Matthews Asia Growth Fund which as at 30 September 2020 held 13 million shares or 3.4%.

Analysts said Sampath Bank like several other liquid stocks had been on the sell side of foreign funds for several months. Some investors were disappointed the price gain was below expectations, whilst others said the stock lost momentum since the split was announced after the market was closed on Wednesday, and the next day there was no trading due to a Poya holiday.

However post-split announcement, Matthews fetched a higher price.

Next trading day post-split announcement SAMP shot up to a new 52-week high of Rs. 250 and closed at Rs. 201.50 up by Rs. 38.25. That week saw 17.78 million SAMP shares change hands via 13,856 trades for Rs. 3.55 billion. Last Friday, SAMP closed at Rs. 176.25, down by Rs. 25.25 from the previous week whilst 10.5 million shares changed hands via 10,892 trades for Rs. 1.95 billion. The previous highest was Rs. 170 established during the week ended on 22 January 2020.