Panic selling by foreign investors at CSE

By Hiran H.Senewiratne

CSE activities witnessed some negative trends yesterday initially but later recorded some recovery. However, the sessions ended in a downward trend due to some panic selling, specially by foreign investors due to the current Covid 19 pandemic situation, market analysts said.

In the previous four sessions, CSE saw a net foreign inflow of Rs. 93 million. The total foreign outflow was Rs. 36.48 billion as of yesterday in spite of a healthy turnover level, which was recorded throughout the year, stock market analysts said.

Amid those developments, JAT Holdings share prices noted a depreciation from the first day of its trading of shares at the CSE. JAT”s market capitalisation was Rs. 12.3 billion and it had issued 510 million shares to the stock market at a mentioned price of Rs 27. At the end of the day its share price depreciated to Rs. 24.90 which was a Rs. 2.10 or 8 percent drop, stock market analysts said.

Against this backdrop, both indices moved downwards. The All Share Price Index was 114.66 points down, while the S and P SL20 was 37.77 points down yesterday. Turnover stood at Rs. 4.13 billion with four crossings. Those crossings were reported in Sunshine Holdings, which crossed 10.5 million shares to the tune of Rs. 267.7 million; its shares traded at Rs. 25.50, Renuka Capital 17.3 million shares crossed for Rs. 143.5 million, its shares traded at Rs. 8.30, Royal Ceramic 1.9 million shares crossed for Rs. 72.2 million, its shares traded at Rs. 38 and Seylan Bank (Non Voting) 1.6 million shares crossed for Rs 57.3 million, its shares fetched Rs. 35.50.

In the retail market, five companies that mainly contributed to the turnover were, Expolanka Holdings Rs. 839.2 million (10.4 million shares traded), LOLC Holdings Rs. 250.8 million (475,000 shares traded), JAT Holdings Rs. 224 million (8.6 million shares traded), Renuka Capital Rs. 205 million (23.3 million shares traded) and Royal Ceramic Rs. 156.6 million (4.1 million shares traded).

In a CSE disclosure it was revealed that Associated Motor Finance Company PLC’s right issue was oversubscribed. The company issued 3.5 million shares on the proportion of ten new shares for every 17 existing shares, which raised Rs. 500.2 million. Further, Softlogic also announced a right issue.

It was said that high net worth and institutional investor participation was noted in Sunshine Holdings and JKH. Mixed interest was observed in Expolanka Holdings, Ambeon Holdings and Royal Ceramics, while retail interest was noted in Renuka Capital, Vallibel Power, Erathna and Ambeon Capital. During the day 208.3 million share volumes changed hands in 37000 share transactions.