CSE closes week with 2% gain; enjoys foreign net inflow

• Control of Agalawatte Plantation goes to Damro Holdings in related party transaction worth Rs. 4.5 b boosting turnover to Rs. 7.7 b

The Colombo stock market ended the week with 2% gain whilst yesterday turnover rose to Rs. 7.7 billion on a related party transaction on Agalawatte Plantations.

The benchmark ASPI saw a 1.9% gain and the active S&P SL20 by 1.4%. Yesterday they rose by 0.5% and 0.1% respectively.

Friday’s turnover was boosted by Agalawatte Plantations PLC, 73% controlling stake (114.1 million shares) of which was bought by Damro Holdings Ltd., from D.R. Investments at Rs. 39.90 per share.  

The ultimate controlling interest of both is the same party.

Asia Securities said the ASPI opened strong, reaching an intra-day high of 11,396 (+138 points), but later retreated during the second half of the session, yet managed to finish positively 11,312 (+54 points). MGT (+17.5%) moved sharply upwards during the session as investors reacted positively to the company’s impressive quarterly results.

TJL (+4.2%), and DIPD (+3.9%) saw renewed buying interest while front-line stocks HNBN (+2.0%), HNBX (+6.5%), CALT (+3.5%), DFCC (+2.9%), PLC (+3.6%), CICN (+3.0%), CICX (+1.3%), NTBN (+2.7%), HAYL (+1.3%), and FCT (+2.0%) continued their upward trend during the session. Nevertheless, EXPO (-2.4%), LIOC (-1.2%), AAIC (-2.2%), SCAP (-1.8%), VONE (-1.6%), and VFIN (-1.8%) recorded price losses. Overall, 96 stocks recorded price gains while 102 settled with losses.

Turnover was boosted by a block trade executed in AGAL (Rs. 4.6 billion).

Asia also said foreigners recorded a net inflow of Rs. 296.2 million. Net foreign buying topped in JKH at Rs. 145.3 million and net selling topped in LLUB at Rs. 15.7 million.

First Capital said the market commenced its activities on a positive momentum during the early hours of trading but dropped mid-day due to profit booking, nevertheless, attained to close the day on a promising note backed by the increased investor interaction on Banking sector and Primary Dealer shares which backed the index to perform exceptionally well.

MGT witnessed revitalized interest during the day on the back of better than expected 1QFY24 results which also aided the index to close in the green at 11,312 gaining 54 points.

NDB Securities said mixed interest was observed in Expolanka Holdings, Hayleys Fabric, and Capital Alliance whilst retail interest was noted in Browns Investments, People›s Leasing & Finance, and LOLC Finance.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Agalawatte Plantations and Browns Investments) whilst the sector index gained 0.15%. The share price of Agalawatte Plantations increased by 40 cents to Rs. 38. The share price of Browns Investments closed flat at Rs. 6.70.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index increased by 0.80%. The share price of Hatton National Bank moved up by Rs. 3.75 to close at Rs. 190.

John Keells Holdings and Expolanka Holdings were also included among the top turnover contributors. The share price of John Keells Holdings closed flat at Rs. 167. The share price of Expolanka Holdings recorded a loss of Rs. 3.50 to Rs. 139.75.

Separately Kelani Cables and ACL Plastics announced their interim dividends of Rs. 6.5 and Rs. 15.0 per share respectively.