Foreign buying into UML pushes net inflows back to Rs. 23 b mark
Wednesday, 11 December 2013 01:08
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Foreign buying into United Motors Lanka Plc (UML) yesterday helped the year-to-date net inflows to touch the Rs. 23 billion mark level, last seen a month ago.
UML saw net foreign buying of 1.876 million shares or a near 3% stake for Rs. 206.4 million at Rs. 110 per share. This along with Rs. 350 million net inflows last week pushed the year-to-date figure to Rs. 23.1 billion. This figure was surpassed early last month, but heavier foreign selling saw it languish at Rs. 22 billion for several weeks.
UML also saw net buying of a 3% stake early last month for Rs. 292 million. As of yesterday foreign holding in UML was a high 57.4% or 38.65 million shares, up by 24 basis points or 75% from 22 million held by 68 shareholders as at March 2013. Some recent foreign parties which have collected smaller quantities include Candor Funds and Gulf Eastern Finance.
Business tycoon M.A. Yaseen holds a 41.8% stake in UML as at end September 2013 (up from 27% a year ago) whilst Readywear Industries Ltd. holds 14.3% down from 26.3%. At the end of FY13 (March 2013), Yaseen held 26.8% and Readywear Industries held 26.3%.
However, stakes held by related parties have remained unchanged with R.R. Yaseen’s stake being 15.72% and S.M. Chrysostom at 6.8%. Mitsubishi Motors Corp holds 4.89%.
Return of net inflows figure to Rs. 23 billion is welcome. Last week’s net inflows were boosted by Rs. 367 million net buying into LOLC and Rs. 172 million into Nestle. Distilleries and Commercial Bank saw Rs. 40 million and Rs. 30 million net foreign buying as well. Yesterday JKH saw net foreign buying of Rs. 48.5 million on 225,082 shares.
Apart from foreign activity, overall sentiments in the Colombo Bourse remained lacklustre with both indices down despite a positive start on Monday.
NDB Stockbrokers said the dip was predominantly due to the price losses seen in index heavy counters Nestle Lanka (down 6%) and Ceylon Tobacco Company (2%).
