Sunday Nov 24, 2024
Sunday Nov 24, 2024
Thursday, 19 August 2021 00:30 - - {{hitsCtrl.values.hits}}
On the back of a bullish market dominated by local investors, the logistics-rich but young diversified conglomerate Expolanka Holdings PLC yesterday dislodged John Keells Holdings (JKH) and Ceylon Tobacco (CTC) to become the second-most valuable listed company in Sri Lanka.
The much sought after and heavily traded Expolanka share yesterday continued its rise further by 16%, or Rs. 14, to close at Rs. 99.60. This propelled Expo's market capitalisation to Rs. 194.7 billion, ahead of the Rs. 180.2 billion of CTC and Rs. 176.8 billion of JKH.
Expo's market value by end-July was Rs. 131 billion, and by yesterday, it had grown by a further Rs. 63.7 billion. In April, the figure was Rs. 91 billion. Last year, Expo finished at 13th with a value of Rs. 57 billion.
Financial services-rich diversified entity LOLC in January this year dethroned JKH to become the most valuable stock and remains so with a market capitalisation of Rs. 225.7 billion.
Bullish investor sentiment on Expo is due to its zenith to become the most profitable listed entity, aided by COVID pandemic-induced opportunities in the global logistics market. It ended FY21 with a hefty net profit of Rs. 14.8 billion as opposed to a loss of Rs. 438 million in FY20. Group revenue rose by 111% to Rs. 218.7 billion. In the first quarter of FY22, it saw a 259% YOY growth in Group Profit After Tax to Rs. 6.3 billion and a 165% YOY increase in Group revenue to Rs. 95.7 billion.
Founded in 2003, Expolanka is the youngest to reach the top three – its history as a listed entity is only 10 years, having gone public in 2011. In contrast, CTC was listed in 1955, LOLC in 1982 and JKH in 1986.
Yesterday, Expo saw 28 million shares change hands via 8,018 trades, generating a turnover of Rs. 2.67 billion. LOLC gained by Rs. 23, or 5%, to close at Rs. 475. Just over half a million LOLC shares traded for Rs. 262 million. JKH gained by one rupee to Rs. 134 though surprisingly on a thin volume of just 0.29 million shares. The illiquid CTC saw its price gain by Rs. 7.50, or 0.8%, to Rs. 962 with just 352 shares traded.
Overall active investor participation and improved sentiment were evident as the CSE's turnover soared to Rs. 6.37 billion involving 289 million shares. The All Share Price Index shot up by 208 points, or 2.56%, and the S&PSL20 gained by 1.7%, or 52 points.
NDB Securities said the ASPI at 8,342.85 points was at its highest level since January.
First Capital said the bourse rallied with a massive gain, fuelling bullish optimism for the second consecutive day, while registering its highest intraday gain in five months and turnover at a two-week high, despite concerns over the ongoing peak in COVID-19 cases.
“Index started off on a solid footing and maintained its steep upward trajectory for the first half of the session but experienced a brief dip mid-day. Subsequently, the market recovered and climbed steadily throughout the remainder of the session, before closing at 8,343,” First Capital added.
It said turnover was led by the Transportation sector, followed by the Food, Beverage and Tobacco sector, accounting for a joint contribution of 55%.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Commercial Leasing & Finance and LOLC Holdings.
It said high net worth and institutional investor participation was noted in Hayleys and Aitken Spence. Mixed interest was observed in LOLC Holdings, Hayleys Fabric and Dipped Products, while retail interest was noted in Browns Investments, Lanka Orix Finance and Expolanka Holdings. Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.
The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), while the sector index gained 15.42%.
The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), while the sector index increased by 1.04%. The share price of Browns Investments gained Rs. 0.30 (4.48%) to close at Rs. 7.
Lanka Orix Finance, and Hayleys Fabric were also included among the top turnover contributors. The share price of Lanka Orix Finance moved up by Rs. 2 (25%) to close at Rs. 10. The share price of Hayleys Fabric appreciated by Rs. 4 (16%) to close at Rs. 29.
Separately, Lanka Milk Foods announced a first and final dividend of Rs. 5 per share.
