Sampath Bank celebrates Jaffna Poson festival as a symbol of national reconciliation – The Island
By Hrian H. Senewiratne
The CSE started on a mixed note due to profit taking in some companies, but later the bullish momentum resumed and the turnover reached over 3 billion rupees for the fourth consecutive day yesterday. The market was mainly driven by blue chip companies, especially Lanka-IOC, which became the most sought-after stocks due to strong earnings, equity analysts said.
Lanka IOC and CPC are said to be making big profits because the world oil market has gone down to US$102 per barrel (Singapore Plates price formula). The Sri Lankan Ministry of Electricity and Energy has authorized the establishment of 50 new service stations by Lanka IOC, the local unit of the Indian Oil Corporation (IOC).
LIOC chief executive Manoj Gupta told media that gas station ads would appear in about a week. “The hangars cannot be opened overnight. We will run the ads and open them in about 50 locations. The Ministry of Power and Energy has given its approval. We’ll post announcements in about a week, he said.
Sri Lanka is in the midst of a fuel crisis triggered by currency shortages. This enabled LIOC to increase its share price by 16% or Rs 18.25. Its share price rose to Rs 131.25 from Rs 113 yesterday after concluding share trading on the floor, stock analysts said.
AgStar and Lanka Lubricants share prices rose more than 16%. AgStar is engaged in the importing, blending and marketing of fertilizer products. The company’s segments include trading and processing and the share price rose by 16.5% or 1.50 rupees. Its share price fell from 9.10 rupees to 10.60 rupees due to the government’s decision to lift the import ban on certain fertilizers, such as glyphosate, market analysts said. Lanka Lubricants share price appreciated by 16% or Rs 13.50. Its share price fell from Rs 94.70 to Rs 81.20.
Amid these developments, both indices rose. The All-Share Price Index rose 89.6 points and S and P SL20 rose 86 points. The turnover amounted to Rs 3.3 billion, with only one crossing. The crossing was reported to Melstacorp, which crossed 667,000 shares to the tune of Rs 30 million; its shares traded at Rs 30 million.
In the retail market, the top seven companies that primarily contributed to revenue were; Lanka IOC Rs 1.5 million (12.1 million shares traded), Expolanka Holdings Rs 319 million (1.5 million shares traded), JKH Rs 199 million (1.6 million shares traded), LOLC Holdings Rs 132 million (235,000 shares traded), Melstacorp Rs 111 million (2.4 million shares traded), Browns Investments Rs 85.5 million (11 million shares traded) and LOLC Finance Rs 75.4 million ( 8.7 million shares traded). During the day, 85.6 million volumes of shares changed hands in 28,000 transactions.
However, overseas sales intensified last week with a net outflow of Rs. 475 million, boosting the year-to-date figure to Rs. 859 million. July saw a net influx of foreigners of around Rs. 784 million. According to stock brokers, the biggest foreign sale over the past week has been to Melstacorp (Rs. 415 million), followed by Expolanka (Rs. 62.2 million) and Windforce (Rs. 16 million), while that net purchase was seen at Richard Pieris (Rs. 62.2 million). 25 million), JKH (Rs. 21 million) and Hayleys (Rs. 14 million).
Yesterday, the Central Bank announced the buying rate for the US dollar at Rs 357.14 and the selling rate at Rs 368.40. The rupee has started to stabilize against the US dollar due to prudent monetary policies adopted by the Central Bank, financial analysts said.